Gold Price News: Gold Falls Back As US Dollar Strengthens

Gold prices fell on Thursday, pulling back from an all-time high seen earlier in the week.

Prices fell as low as $2,471 an ounce on Thursday, compared with just under $2,500 an ounce in late trades on Wednesday.

The US dollar strengthened against other currencies on Thursday, rebounding from a 13-month low against the Euro seen on Wednesday. A stronger dollar tends to weigh on dollar-denominated gold prices as it makes the yellow metal more expensive for buyers in other currencies, denting demand.

Gold’s push to a new all-time high of $2,532 an ounce on Tuesday may also have attracted some profit-taking moving into Thursday’s session, leaving prices vulnerable to a modest downward move.

US initial jobless claims figures for the week ending August 17 came in at 232,000 on Thursday, broadly in line with market expectations, and providing little impetus for gold prices.

On a technical basis, eyes will now be on the price level of around $2,475 to $2,480 an ounce to see if this previous resistance level becomes a new area of support.

Looking ahead, attention will turn to Friday’s planned speech by US Fed Chair Jerome Powell at a gathering of central bankers at the Jackson Hole Symposium on Friday and Saturday, for any clues on the path forward for interest rates. The markets will be hoping for clear guidance on whether inflation has fallen enough to warrant a rate cut in September, and of what magnitude.