LONDON. – Gold prices eased yesterday as the dollar and stocks advanced, pointing to higher demand for riskier assets driven by upbeat US economic data and a slew of strong corporate earnings reports.
Spot gold was marginally firmer at $1 346,42 per ounce at 0942 GMT, while US gold futures for June delivery were steady at $1 349,30 per ounce.
Activtrades chief analyst Carlo Alberto De Casa said a stronger dollar was the main reason for gold losing its lustre, adding that the precious metal faced resistance at $1 350,70.
“It’s a key area because if gold can jump above $1 370 then we have an open door up to $1 400, at least. If gold can pass these peaks this would mean the upward trend is confirmed and could be even stronger,” he said.
The dollar index, which measures the greenback against a basket of currencies, pulled away from a three-week low reached on Tuesday, lifted by stronger-than-expected March US housing starts and steady industrial production figures. A stronger greenback makes dollar-priced gold costlier for holders of other currencies