30th Aug 2018 19:46
WASHINGTON (Alliance News) - Gold prices drifted lower on Thursday, extending losses to a third straight session, as the greenback gained in strength against most major currencies.
The dollar's uptick was due largely to expectations that the Federal Reserve, prompted by recent strong economic data, will hike interest rates in September and then in December this year.
The US dollar index gained 0.26 points or nearly 0.30% to 94.72, driven by data showing inflation meeting the Fed's target levels and strong consumer spending in July. The index rose past 94.80 earlier in the day.
The Argentine peso crashed more than 7% today after a collapse in investor confidence in President Mauricio Macri's government. The Turkish lira extended its slide after Moody's downgraded 20 Turkish financial institutions and a measure of the country's economic confidence index fell 9% month-on-month in August to its lowest since March 2009.
Gold futures for December ended down USD6.50, or 0.5%, at USD1,205 an ounce.
On Wednesday, gold futures ended down USD2.90, or 0.24%, at USD1,211.50 an ounce.
Silver futures for December ended down USD0.216, at USD14.594 an ounce, while Copper futures for December settled at USD2.7175 per pound, down USD0.0190 from previous close.
According to a report from the Commerce Department, personal income and spending in the US both increased in line with economist estimates in the month of July. Personal income rose by 0.3% in the month after climbing 0.4% in June, matching expectations.
Personal spending climbed by 0.4% in July, matching the increase in the previous month as well as economist estimates.
The personal consumption expenditures price index excluding food and energy, rose 2% in the 12 months through July.
According to a report released by the Commerce Department on Wednesday, economic activity in the US increased by slightly more than initially estimated in the second quarter,
The report said real gross domestic product climbed by 4.2% in the second quarter compared to the previously reported 4.1% increase. The pace of growth had been expected to be downwardly revised to 4.0%.
With the unexpected upward revision, the GDP growth in the second quarter reflects a significant acceleration from the 2.2% advance in the first quarter.