Gold Price Slides on Stronger Dollar and Steadying Stocks
London (Jan 21) Gold prices slipped lower on the London spot market Thursday, under pressure from steadying stocks and a stronger dollar. Spot gold was down 0.3% at $1,097.64 a troy ounce in morning European trade, moving within a tight $8 range. The biggest loser among precious metals was platinum, which traded at seven-year lows for the fifth day in a row.
Earlier in the session, gold traded above a key level at $1,100 an ounce as stock market volatility drove investors toward the precious metal. Gold is broadly considered a safe-haven investment and demand increases during periods of heightened economic or political risk.
“The sharp selloffs in the global equity markets which continuously encouraged safe-haven attention have granted a false lifeline to gold bulls who have found it noticeably difficult to break above the psychological $1,110 [an ounce] resistance,” said Lukman Otunuga, a research analyst at brokerage FXTM.
As stocks in Europe steadied and the greenback firmed, the dollar-denominated metal drifted slightly lower. The WSJ Dollar Index was recently up 0.14% at 91.69.