Gold Prices Hit New Lows As US Dollar Strengthens
On Monday afternoon gold futures lost some earlier gains in Europe as the dollar reached a yearly high. Gold futures for December delivery were trading at $1,226.1 on the Comex down 0.09%. The price dropped 1.6% last week to reach a new three-month low of $1,258.0.
The drop in price was due to investors expecting better non-farm payroll figures to be released. Due to the figures the price of gold rose early on Monday, but the value of the dollar is a major influence on gold and as the dollar strengthened throughout Monday the price of gold dropped.
Many analysts believe that the USD will continue to gain in strength in the short term which means that the price of gold is likely to reach new lows. However, if the situation in Ukraine flares up again then the price is likely to hold steady.