MTECHTIPS;-Gold Prices Slip as Dollar Recovers from Overnight

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MTECHTIPS;-Gold Prices Slip as Dollar Recovers from Overnight Plunge

MTECHTIPS- Gold prices slipped on Tuesday as the dollar recovered from an overnight plunged amid reports of FBI raiding the office of U.S. president Trump’s lawyer. Gold futures for June delivery on the Comex division of the New York Mercantile Exchange slipped $2.30, or 0.17%, to $1,337.8 a troy ounce by 11:56 AM ET (03:56 GMT). The U.S. dollar index that tracks the greenback against a basket of six major currencies last stood at 89.59 at 10:49 PM ET (02:49 GMT), up 0.06%. The dollar tumbled from 89.95 overnight to Tuesday’s morning low at 89.49, but gradually recovered in late morning. More directional drivers for the greenback include March’s producer price index that is due later in the day. Inflation growth at the wholesale level as measured by the producer price index is expected to have cooled to 0.1% in March from 0.2% in the prior month.Dollar-denominated assets such as gold are sensitive to moves in the dollar – a gain in the dollar makes gold more expensive for holders of foreign currency and thus decreases demand for the precious metal