Gold prices little changed as dollar rises
NEW YORK — Gold prices were little changed in quiet trading Monday amid a higher dollar and a decline in stocks.
Other commodities were mixed.
The dollar was higher against other major currencies Monday, reversing its recent downward trend, which put pressure on gold prices. The precious metal is used as a hedge against inflation and a weak U.S. currency, so it often moves inversely with the dollar.
Bearish economic data out of China also likely curbed gold buying, said James Steel, an analyst with HSBC in New York. The country reported that consumer prices fell 1.5 percent in April from elevated levels a year earlier.
“Given those reasons, I think gold held up reasonably well,” Steel said. “There’s enough investment demand to keep it steady.”
Gold for June delivery slipped $1.40 to settle at $913.50 an ounce on the New York Mercantile Exchange.
Other metals were also slightly lower. July silver fell 4.5 cents to $13.91 an ounce, and July copper futures fell 5.7 cents to $2.0885 a pound.
On Wall Street, stocks fell as investors cashed in some of their recent gains. Financial shares led the decline as three banks that passed the government’s “stress tests” last week said they plan common stock offerings to help repay federal funds they received last fall.
Bank stocks have largely led the market’s stunning two-month rally that has seen the benchmark Standard & Poor’s 500 index jump 37.4 percent since early March.
An improving economic outlook, stoked by better-than-expected first-quarter earnings reports and other key data, has kept the market afloat.
Oil prices pulled back slightly on the Nymex following a 10 percent surge last week. Oil prices have pushed higher in recent weeks on increasing optimism about the economy, and the belief that energy demand could soon pick up.
Light, sweet crude for June delivery fell 13 cents to settle at $58.50 a barrel.
In other Nymex trading, gasoline futures fell 2.53 cents to $1.6802 a gallon, while heating oil futures fell 1.75 cents to $1.5009 a gallon.
Grain prices were mixed on the Chicago Board of Trade.
July wheat futures dipped 0.25 cent to $5.9075 a bushel, while corn for July delivery inched up 0.25 cent to $4.2125 a bushel.
July soybeans added 4.5 cents to $11.16 a bushel.
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