Gold Snaps Losing Streak as the Dollar Rally Pauses
After falling last week on a stronger dollar, precious metals attempted to take advantage of a pause in the dollar rally as this week began. With last week’s inflation data, and next week’s Fed decision, this week was lighter in terms of scheduled economic events. Investors largely focused on corporate earnings, housing data, and rate hike news from the European Central Bank (ECB), which was set for Thursday.
On Wednesday, gold dipped to a 15-month low of $1,693 ahead of the ECB interest rate announcement. Silver was slightly higher on Wednesday, at $18.76 an ounce. Despite existing home sales in the U.S. falling for the fifth straight month, stocks rallied for the second consecutive day on Wednesday.
Gold was able to recover from relative lows on Thursday, with tailwinds from a softer dollar and negative news on the U.S. economic front. Specifically, data from the Labor Department outlined jobless claims that exceeded estimates again, with the claims seeing 7-month highs above 250,000.