Forex News
May 16, 2013 @ 2:15 pm

Gold prices fall to four-week low

Gold prices fell to a four-week low on Thursday, extending its decline for six days in a row as a result of the weaker US dollar. The two assets tend to have an inverse price relationship.

A stronger dollar reduces the precious metal’s appeal as a safe haven asset and makes dollar-priced commodities more expensive for holders of other currencies.

Gold prices fell to $1,369 a troy ounce, the lowest level since April 18.

Data show that hedge fund billionaire George Soros reduced his holdings of gold-backed exchange-traded products in the first quarter.

A series of US economic data released today on building permits and housing starts, as well as data on consumer inflation, initial jobless claims were mixed.

US jobless claims were higher than forecast, causing the dollar to pare back gains. This helped gold from a further decline.

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