Gold finish above $1,090, but stumbles on rate fears

Gold prices finished higher in Tuesday trade but encountered late pressure from the U.S. dollar, which rallied after remarks from a Federal Reserve official pointed to a September interest-rate hike.

Gold stumbled to the close, paring gains after Lockhart’s remarks, stumbling to the close of trade.

Gold for December delivery GCZ5, -0.45% the most actively traded contract on Comex gained $1.30 cents, or less than 0.1%, at 1,090.70 an ounce, after closing at $1,089.40 an ounce Monday.

A rate hike is likely to weigh on buyers of dollar-denominated commodities like gold. Higher rates increases the return on dollar deposits, which makes it more appealing to currency traders. The ICE U.S. Dollar Index DXY, +0.18%  jumped higher after Lockhart’s remarks, moving from about 97.39 to 97.88.

Click Here For Free Signals OR Give A Missed Call : +60350219047 Follow Us On Twitter : www.twitter.com/epicresearchmy Like Us On Facebook : www.facebook.com/EpicResearchMalaysia Need Any Assistance About KLSE online Feel Free To Mail Us at : info@epicresearch.my