Gold Down Despite Weakness in US Dollar

Posted By: Religare
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Gold futures closed lower in the international market on Monday despite the dollar heading for its fifth-straight monthly decline.

Gold Down Despite Weakness in US Dollar

The dollar maintained losses, sending it lower after the Commerce Department reported second-quarter gross domestic expanded at 2.6% annual pace in the second quarter, a pickup from a revised 1.2% pace in the first quarter but weaker than forecast.

Gold and the U.S. currency unit typically move inversely as a cheaper dollar is beneficial to gold investors using another currency. But both markets are impacted by interest-rate policy as higher rates support the dollar, but also dull the appeal of nonyielding gold in favor of interest-bearing assets.

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