By Barani Krishnan
Investing.com -- Another day and another two-decade high in the dollar has left gold drifting lower again in the mid-$1,700 territory.
Gold futures for August delivery on New York’s Comex settled down $6.90, or 0.4%, at $1,724.80 per ounce.
Despite having just started the week, Comex gold’s benchmark contract is already down 1% on the week. That extends a previously unbroken four-week decline that cumulatively put the yellow metal down $150, or 8%, since the week ended June 3. Year-to-date, gold is down 6%.
Gold’s latest dip came as the Dollar Index, which pits the U.S. currency against six other majors, plucked a new high above 108 since Oct 2002.
“Gold prices are holding on to dear life as the dollar rally hits a major marker,” said Ed Moya, analyst at online trading platform OANDA.
“Gold will eventually see some safe-haven flows but that won’t happen until a firm dollar top is made. Gold is trying to hold onto the $1700 level and that will likely be tested with a very hot inflation report tomorrow.”
U.S. inflation has been persistently running at four-decade highs since late last year, with the closely-watched Consumer Price Index growing at an annualized rate of 8.6% as of May. The June update, due on Wednesday, is expected to show an 8.8% increase.