Gold prices hovered near five-week lows on Thursday, as hawkish remarks from Federal Reserve officials and robust data dampened investors’ expectation for deeper and early interest rate cuts in US this year.
Spot gold edged 0.1 percent higher to $2,008.59 per ounce, a day after it fell to $2,001.72 – its lowest since Dec. 13.
US gold futures rose 0.2 percent to $2,010.70.
The dollar has strengthened substantially in the past few days, putting a strain on gold prices, Brian Lan at the Singapore based dealer GoldSilver Central, said.
The dollar held close to a five-week peak after data overnight showed US retail sales increased more than expected in December, keeping the economy on solid ground heading into the New Year. Yields on the benchmark US 10-year Treasury notes also hovered near five-week highs.
A stronger dollar makes greenback-priced gold more expensive for foreign currency holders.
“The year has just started and probably a lot of investors think that prices are not going any higher, so it’s time to take profit… it’s a usual market cycle from what we see,” GoldSilver’s Lan said.
