MTECHTIPS;- Gold Prices Hover Near 17-month Lows as Dollar Weighs

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MTECHTIPS;- Gold Prices Hover Near 17-month Lows as Dollar Weighs

MTECHTIPS-Gold prices traded lower on Monday as a stronger dollar continued to weigh on the precious metal, with investors showing a preference for the greenback as a safe-haven asset. At 10:48 AM ET (10:48 GMT), gold futures for December delivery on the Comex division of the New York Mercantile Exchange traded down $4.50, or 0.37%, to $1,218.70 a troy ounce. That was still higher than last Friday’s $1,205.10, its lowest level since March 2017. Meanwhile, the U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, gained 0.15% to 95.17, pushing back towards a more-than-one-year high of 95.44 reached in mid-July. A stronger greenback makes the dollar-denominated metal more affordable for holders of other currencies. Recent dollar strength has been buoyed by expectations that the Federal Reserve will push forward with rate hikes, with markets pricing in moves in both September and December. Higher interest rates tend to weigh on demand for gold, which doesn’t bear interest, in favor of yield-bearing investments

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