Gold Price Extends Early Losses and is Sharply Lower as US$ Index in Strong Rebound
New York (May 19) Gold prices are trading near their daily low at sharply lower levels in late-morning trading Tuesday. Early losses were extended when the U.S. dollar index surged to its daily high in the wake of a very upbeat U.S. housing market report. The two-day rally in the greenback is giving early indications that recent sell off in the dollar index was just a downside correction in a longer-term price uptrend. The strong housing starts report Tuesday morning falls into the camp of the U.S. monetary policy hawks that want to see a U.S. interest rate hike from the Federal Reserve sooner rather than later--which is also deemed bearish for the gold and silver markets. June gold was last down $19.40 an ounce at $1,208.00.