Gold prices fall as much as 2% to nearly one-year lows on Thursday, as the dollar extended its rally following hotter than expected U.S. inflation that solidified expectations for aggressive interest rate hikes from the Federal Reserve.
August Comex gold ( XAUUSD:CUR ) recently traded -1.4% at $1,710.40/oz while September silver ( XAGUSD:CUR ) -4.4% at $18.35/oz, while the dollar soared to a 20-year high, emerging as a preferred save haven at gold's expense.
ETFs: ( NYSEARCA: GLD ), ( NYSEARCA: GDX ), ( IAU ), ( NUGT ), ( PHYS ), ( SIL ), ( SLV ), ( SIVR )
" Gold will unlikely see any upside unless inflation deteriorates enough to stop interest rate hikes or if other central banks start to be as aggressive as Fed, and that can weaken the dollar," according to Philip Streible, chief market strategist at Blue Line Futures in Chicago.
Silver "appears to be relatively undervalued/underpriced vs. both copper and gold, [and] is statistically due for a meaningful move higher soon," Paul Franke writes in a bullish analysis posted on Seeking Alpha .
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Gold, miners slide as likely big Fed rate hike lifts dollar