Gold prices fall under pressure of rising dollar

Gold prices fell on May 12 morning against the backdrop of a rising dollar index, Report informs referring to the auction data.

The price of June futures for gold on the New York Comex exchange fell by $3.06, or 0.15%, to $1,850.55 per troy ounce. July silver futures fell 0.92% to $21.337 an ounce.

The dynamics of the precious metal is inversely proportional to the dynamics of the US currency. So, if the dollar strengthens, gold becomes a less profitable asset, as a result, its value falls. At the moment, the dollar index (the exchange rate against a basket of currencies of six countries - US trading partners) is increasing by 0.17%, to 104.03 points, which makes the precious metal less attractive to buy.

The cost of the precious metal has fallen by 3.2% since the beginning of the month due to expectations of tightening monetary policy by the Federal Reserve System and the growth of the dollar. Thus, gold lost its price mark of $1,900 per troy ounce, which it reached on geopolitical tensions.