Gold prices edged lower on Monday, as dollar strengthened against major currencies, riding on U.S. Treasury Secretary Steven Mnuchin’s comments that both he and the President fully support the Fed’s independence and that the U.S. will not interfere in foreign exchange markets.
The dollar index edged up $0.16 or 0.17% at $94.41.
Gold futures for August ended down $5.50 or about 0.5% at $1,225.60 an ounce. On Friday, gold futures for August ended up $7.10, or 0.6%, at $1,231.10 an ounce.
Silver futures for September were down $0.149 or 0.96% at $15.400 an ounce. Copper contracts were down $0.013 or 0.47% at $2.743 per pound.
Expressing his views about Fed’s rate decisions, President Donald Trump had said last week that he was not thrilled at rate hikes. “Because we go up and every time you go up they want to raise rates again. I don’t really – I am not
happy about it,” he said. However, he added, “I’m letting them do what they feel is best.”
Subsequently, on Saturday, Trump accused China and the European Union of manipulating their currencies.
According to a report from the National Association of Realtors, existing home sales in the U.S. unexpectedly decreased for the third straight month in June. NAR said existing home sales fell by 0.6% to an annual rate of 5.36 million in June from a downwardly revised rate of 5.41 million in May.
Total housing inventory at the end of June climbed 4.3% to 1.95 million existing homes available for sale, representing 4.3 months of supply at the current sales pace.
Meanwhile, markets are looking ahead to U.S. GDP data for the second quarter, due later this week. It is widely expected that the data will show a notable growth in the June quarter.