Stronger US Dollar Pushes Gold Prices Lower

The US dollar index is higher today, gaining ground as the greenback shows improvement against the euro. Even though the dollar is lower against some currencies, the greenback is showing overall strength, and that is pushing commodities like gold lower.

Greenback is showing solid strength today, thanks in large part to the relative recovery of the US economy. Against the euro, especially following the latest GDP data out of Germany and France, the dollar is heading higher. Euro weakness is providing a boost to the dollar index, and the dollar is also getting help from a weak yen.
US dollar is lower against the UK pound, though. The latest forecast from the BOE indicates that things might be picking up for the UK economy. The speculation over which central bank will ease stimulus measures first will likely play a role in determining the long term interplay between the pound and the dollar.
The higher dollar index is also weighing on gold prices, which have slipped below $1,400 an ounce. With the dollar so strong, commodities are lower.
At 15:32 GMT the US dollar index has climbed to 83.9000 from the open at 83.5780. EUR/USD is down to 1.2867 from the open at 1.2920. GBP/USD is up to 1.5222 from the open at 1.5208. USD/JPY is up to 102.4300 from the open at 102.4100.

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