Gold price slips on strong US dollar
Frankfurt (Apr 13) Gold prices were higher on Monday, with a firm dollar applying some pressure.
Spot gold was trading down 0.8 per cent at $US1,198.14 a troy ounce in morning European trade.
"The strong US dollar has prevented the gold price from recovering," said Commerzbank.
As the yellow metal is priced in dollars, when the greenback gains gold becomes more expensive to purchase for those holding other currencies. This typically leads to demand curtailing and prices falling.
More broadly, the likelihood, however distant, of a June interest rate hike by the US Federal Reserve has been weighing on prices. The macro picture is considered bearish by some market participants -- including Barclays -- and in the absence of positive macro news, gold is expected to struggle to make gains.
"However, the floor is likely to firm as demand in India picks up in the run-up to festival-related buying," said Barclays.
Among the other precious metals, silver was trading down 0.7 per cent at $US16.330 an ounce, platinum was trading down 0.9 per cent at $US1,156.50 an ounce, and palladium was trading up 0.9 per cent at $US780.90 an ounce.