Gold erased all gains made yesterday as the Dollar strengthened today after reacting to positive employment data.
Despite a few dips, the Us Dollar is overall holding strong against most major counterparts, especially against the Sterling, Euro and Japanese Yen, as well as Canadian Dollar.
Gold usually has an inverse correlation with the greenback, thereby as the Dollar strengthens, it makes Dollar-priced assets more expensive for non-US buyers.
Spot gold reached an all- time high on May 2nd, reaching $1,575.78. It’s price has since dropped to as low as $1,462.23., as the US Dollar’s 3 percent rise against a basket of currencies this month has diminished investor appetite for the precious metal.
“There is probably some consolidation around where we are, perhaps to test $1,500. I think the dollar will continue to play an important role,” said RBS analyst Daniel Major.
Spot hit a high of $1,499.64 today and touched as low as $1,486.18 at 11:11am CET.