TEMPO.CO, Jakarta – Gold prices in COMEX New York Mercantile Exchange slumps Thursday morning as the U.S. dollar strengthens.
The most active gold contract for June shipment fell US$1.3 or 11 percent to remain at US$1,185.60 per ounce.
Gold prices are under pressure as the U.S. Index Dollar climbed Wednesday. The Index is a measure of the U.S. dollar against other major currencies.
Gold and the U.S. dollar typically moved in opposite directions, meaning that if the dollar climbs then gold will fall, because gold—traded in the U.S. dollar—becomes more expensive for investors.
In addition, strong U.S. economic data released on Monday was also in line with last week’s positive comments made by Federal Reserve chairman Janet Yellen, showing that the U.S. central banks would raise its interest rates this year, which would add more pressure to gold.
Silver for July shipment fell 9.9 cents or 0.59 percent to close at US$16,647 per ounce, while platinum for July shipment fell US$5.1 or 0.45 percent to conclude at of US$1,119,00 per ounce.