Gold slips on strong dollar

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Friday, October 14, 2016

Gold and silver slipped under pressure from a rising US dollar.

The yellow metal closed down US$9.30 at US$1,251.75/oz, its lowest close since June 7, with silver down 12 cents at US$14.47/oz.

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Prices were impacted by further strengthening of the greenback, which at one point edged above 91 euro cents for the first time since July, before settling back to around 90.8 euro cents.

Precious metals prices have suffered recently as a result of increased speculation about a near-term US interest rate hike and expectations of a sell-off by investors, which led Dutch bank ABN AMRO to cut its gold and silver price forecasts.

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OUTLOOK

However, other commentators remain more bullish for gold. Victory for Republican candidate Donald Trump in November's presidential elections could boost gold to over US$1,400/oz, Capital Economics' Caroline Bain and Julian Jessop said.

"While the gold price has come under pressure recently, we think that looming global risks could see it rally again," they said.