SANAA, April 24 (YPA) – Gold prices fell on Wednesday to hover around the four-month low they reached on in the previous session, while the dollar rallied after strong US housing data eased fears of an economic slowdown in the US, amid strong appetite for risk.
Spot gold prices fell 0.2 percent to $ 1269.93 an ounce after hitting their lowest since the end of last year at $ 1265.90 an ounce in the previous session.
US futures also fell 0.1 percent to $ 1271.80 an ounce.
“The main factor putting pressure on gold prices is the strength of the dollar, which is also putting pressure on current demand,” said Peter Fong, managing director of Hong Kong’s Wing Fung Precious Metals.
The dollar index was close to a 22-month high after data showed that new home sales in the United States rose to near a year-and-a-half high in March.
These data eased fears of a slowdown in the world’s largest economy ahead of the declaration of US GDP on Friday.
Gold prices have been under pressure from recent global equities with better-than-expected data and a supportive monetary policy environment that has given rise to risk appetite.
Gold prices have come under pressure as global equities have recently rallied due to better-than-expected data and a supportive monetary policy environment, giving a boost to risk appetite.