Gold prices remain lower as market sentiment improves
Investing.com – Gold prices remained on the downside on Monday, as concerns over the impact of Hurricane Irma and tensions with North Korea continued to subside.
Comex gold futures were down by $11.47 or about 0.85% at $1,339.74 a troy ounce by 08:30 a.m. ET (12:30 GMT), off Friday’s one-year peak of $1,362.40.
The dollar regained some strength following an official downgrading of Hurricane Irma’s strength to Category 1, as the storm pummeled Florida over the weekend after devastating much of the Caribbean.
Massive storm surges have flooded areas across South Florida, while downed trees and power lines have left over 2 million residents without power.
U.S. President Donald Trump said on Saturday that he will ask Congress to speed up its efforts to overhaul the U.S. tax code, citing the potential impact of Hurricane Irma.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.31% at 91.60, off Friday’s 32-month low of 90.99.
Gold is sensitive to moves in the dollar. A stronger dollar makes gold more expensive for holders of foreign currency.
Market participants had been worried about a potential North Korean missile test on Saturday, to mark the anniversary of the founding of the nation.
However, investors were relieved to learn that Pyongyang chose to observe the 69th anniversary of its founding only by honoring the scientists behind the massive nuclear test it conducted last week.
Elsewhere on the Comex, silver futures lost 28 cents or about 1.58% to $17.84 a troy ounce.