Gold prices slip to 18-month low on sturdy dollar
- Gold prices slipped to their lowest since January 2017 early on Wednesday.
- The U.S. dollar clung to its highest in 13 months.
Gold prices slipped to their lowest since January 2017 early on Wednesday, pressured as the U.S. dollar clung to its highest in 13 months.
Spot gold was down 0.1 percent at $1,192.11 an ounce at 0110 GMT, after hitting its lowest since late January 2017 at $1,190.77.
U.S. gold futures were down 0.1 percent at $1,199.1 an ounce.
Asian stocks sagged on Wednesday, failing to track Wall Street’s gains and with the dollar near a 13-month peak as concerns about Turkey’s financial crisis weighed on investor appetite, despite the lira’s move away from an all-time low.
President Tayyip Erdogan said on Tuesday that Turkey would boycott electronic products from the United States, retaliating in a row with Washington that has helped drive the lira to record lows.
U.S. import prices were unchanged in July as a surge in the cost of fuels was offset by weak prices elsewhere, suggesting that a strong dollar was keeping imported inflation in check.
Euro zone growth was better than expected in the second quarter, flash estimates showed on Tuesday, in a sign that the negative effects of global trade tensions might be seen only later in the year.
The Chinese government is expediting plans to invest billions of dollars in infrastructure projects as its economy shows signs of cooling further, with investment growth slowing to a record low and consumers turning more cautious.
New York-based Paulson & Co, led by longtime gold bull John Paulson, kept its stake in gold investments during the second quarter of 2018, while other heavyweights including Soros Fund Management, Jana Partners and Caxton all remained unexposed to the metal.
SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 1.01 percent to 776.65 tonnes on Tuesday from 784.60 tonnes on Monday.
South Africa’s Gold Fields said on Tuesday it plans to cut costs and 1,100 jobs at its struggling South Deep mine, sending its shares down more than 12 percent.
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