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Commodities – Gold Prices Move Lower as US Dollar Strengthens – Investing.com

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Gold prices lose ground after upbeat U.S. economic reportsGold prices lose ground after upbeat U.S. economic reports

Investing.com – Gold prices moved lower on Thursday, as the release of better than expected U.S. economic reports lent support to the dollar.

Comex were down by $5.51 or about 0.38% at $1,322.53 a troy ounce by 08:40 a.m. ET (12:40 GMT).

The greenback strengthened after the U.S. Commerce Department said consumer price inflation .

The strong data added was seen as increasing chances of an additional rate hike by the Federal Reserve this year.

A separate report showed that initial jobless claims unexpectedly declined to last week, adding to optimism over the strength of the economy.

The dollar also remained supported amid hopes a tax reform would soon be implemented by the administration, after U.S. President Donald Trump reached out to both Democrats and Republicans this week.

Trump said on Twitter Wednesday “the biggest Tax Cut & Tax Reform package in the history of our country will soon begin. Move fast Congress!”

The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.12% at 92.51, the highest since September 5.

Gold is sensitive to moves in the dollar. A stronger dollar makes gold more expensive for holders of foreign currency.

Elsewhere on the Comex, dropped 0.56% to $17.77 a troy ounce.

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