Gold hits highest in nearly 7 weeks on struggling dollar

Reuters/Pratima Desai/07-31-17

Gold prices hit their highest in almost seven weeks on Monday, boosted by a struggling dollar and U.S. economic data that has cast doubt on whether the Federal Reserve will raise rates again this year.

Spot gold was down 0.1 percent at $1,268.00 an ounce at 1117 GMT from an earlier $1,270.98, its highest since June 14. It is on course for a two percent rise this month. U.S. gold futures fell 0.1 percent to $1,267.6 an ounce.

“Dollar weakness is driving the gold price. It’s not just against the euro, it’s against most major currencies,” said Commerzbank analyst Eugen Weinberg. “U.S. politics is a mess and U.S. data has not been inspiring.”

A U.S. currency near 13-month lows against a basket of currencies makes dollar-denominated gold cheaper for holders of other currencies, which could mean stronger demand.

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