Gold prices tipped lower Thursday, trading about flat for the week to date as a whole, as the dollar index holds near its recent high-water mark.
December gold GCZ8, +0.36% was down $1, or 0.1%, at $1,209.10 an ounce, now up roughly $8 since Tuesday’s finish at $1,201.40 marked the lowest for a most-active contract in over a month, according to FactSet data.
The SPDR Gold Shares GLD, +0.12% slipped 0.2%.
December silver SIZ8, +0.53% tacked on 1 cent, or 0.1%, to $14.095 an ounce. Its settlement Tuesday at $13.977 was the lowest for a most-active contract since January 2016, but it has generally stabilized since.
The ICE U.S. Dollar Index DXY, +0.21% a measure of the U.S. currency against six major rivals, rose 0.2% at 97.16. The dollar rose against the pound as Brexit uncertainty boiled up anew as more senior members of U.K. Prime Minister Theresa May’s cabinet resigned, signaling more turmoil and ahead for her leadership and casting fresh doubts on an orderly exit from the European Union.
The news had limited direct impact on gold sentiment, other than continued influence from a firmer dollar.
The dollar index’s push above 97.57 earlier this week was its highest level since June of 2017, according to FactSet data. The gauge has climbed about 5.5% year to date, partly boosted by expectations for further tightening by the Federal Reserve. The Fed is expected to raise rates next month and has signaled three more increases in 2019. Higher interest rates can boost the dollar and dull demand for dollar-denominated commodities.
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