Gold prices slip lower as U.S. dollar rebounds

By Investing.com / March 24, 2017 / in.investing.com / Article Link

Investing.com - Gold prices slipped lower on Friday, as the U.S. dollar regained some strength ahead of a highly-anticipated vote on U.S. President Donald Trump's healthcare bill.

On the Comex division of the New York Mercantile Exchange, gold futures for April delivery were down 0.28% at $1,243.85, just off the previous session's three-week high of $1.253,15.

The April contract ended Thursday's session 0.20% lower at $1,247.20 an ounce.

Futures were likely to find support at $1,226.40, the low of March 23 and resistance at $1,253,15, Thursday's high.

The dollar regained some strength as the vote on the U.S. administration's healthcare bill was postponed on Thursday and rescheduled for Friday.

Trump warned House Republican lawmakers that he will leave Obamacare in place and move on to tax reform if they do not approve new legislation on Friday.

The healthcare vote is seen by investors as a test of his ability to implement key campaign promises such as tax reform and infrastructure spending.

The U.S. dollar index, which measures the greenback's strength against a trade-weighted basket of six major currencies, was up 0.15% at 99.71, pulling away from Wednesday's six-week low of 99.34.

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.

Market participants were looking ahead to a string of manufacturing and service sector activity data from the euro zone, due later in the day as well as U.S. data on durable goods orders.

Elsewhere in metals trading, silver futures for May delivery were little changed at $17.589 a troy ounce, while copper futures for May delivery fell 0.25% to $2.638 a pound.

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