Gold reverses course, falls from 2016 high as dollar rebounds
Gold dropped more than 1 percent on Thursday, retreating after an early rise as the U.S. dollar strengthened when President Donald Trump talked up a stronger greenback.
The dollar reversed earlier losses and U.S. stocks relinquished gains after Trump told CNBC in an interview in Davos, Switzerland that he wants to see a strong dollar. <.dxy>
That sent gold tumbling to a session low of $1342.70 per ounce.
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A day earlier, the dollar fell and gold rose after U.S. Treasury Secretary Steven Mnuchin said he welcomed a weaker currency.
"The second Trump`s comments came out, we saw weakness in the euro and strength in the dollar that bled over into other markets," said Phillip Streible, senior commodities strategist at RJO Futures in Chicago.
"Gold started to sell off and silver followed. Once that occurred, it seems like people long on this rally that had built up a lot of positions at these higher levels were nervous that they`d give up their gains that they`ve seen over the last few weeks."
Earlier, U.S. gold futures
"After everybody heard the purveyors of finance, their views on the dollar and global GDP, there was an intraday reversal," said Michael Matousek, head trader at U.S. Global Investors in San Antonio.
After reaching its highest since August 2016 this week, gold was due for a correction, traders said.
"The explosive move we have seen almost continuously since Dec. 12 is really quite amazing. For this market to have a chance of going higher it desperately needs to consolidate," Saxo Bank analyst Ole Hansen had said earlier.
In other precious metals, silver
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)