Gold prices move lower on U.S. rate hike talk

By Investing.com / March 03, 2017 / in.investing.com / Article Link

Investing.com - Gold prices moved lower on Friday, as growing expectations for a March rate hike in the U.S. and a stronger U.S. dollar continued to weigh on the precious metal.

On the Comex division of the New York Mercantile Exchange, gold futures for April delivery were down 0.41% at $1,227.85, the lowest since February 15.

The April contract ended Thursday's session 1.37% lower at $1,232.90 an ounce.

Futures were likely to find support at $1,217.30, the low of February 15 and resistance at $1,247.60, Thursday's high.

The greenback remained broadly supported after a number of Federal Reserve officials this week expressed their support for a March rate hike.

The dollar was also boosted after the U.S. Department of Labor said initial jobless claims declined by 19,000 to 223,000 in the week ending February 25 from the previous week's total of 242,000.

Analysts expected jobless claims to rise by 1,000 to 243,000 last week.

The U.S. dollar index, which measures the greenback's strength against a trade-weighted basket of six major currencies, was down 0.13% at 102.03, not far from Thursday's seven-week high of 102.27.

A strong U.S. dollar usually weighs on gold, as it dampens the metal's appeal as an alternative asset and makes dollar-priced commodities more expensive for holders of other currencies.

More clues on interest rate hikes ahead of the central bank's March 14-15 meeting were expected on Friday, with speeches scheduled from both Fed Chair Janet Yellen and Vice Chair Stanley Fischer.

Elsewhere in metals trading, silver futures for May delivery was little changed at $17.742 a troy ounce, while copper futures for May delivery were steady at $2.690 a pound.

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