Gold falls on stronger dollar.
Gold falling today on the strong U.S. dollar inflows as inflation concerns are starting to strengthen among the investors. Data showed U.S. consumer prices rose strongly in May, leading to the biggest annual increase in nearly 13 years, while jobless claims dropped to their lowest in nearly 15 months last week. The dollar index rose today reducing gold’s appeal for investors holding other currencies and adding to the bearish pressure on the precious metal. Focus now shifts to Fed’s June 15-16 policy meeting – which should give clues on to how the Fed will handle the overheating USA economy – which would be an important signal for gold prices.
Next support to watch – 1869.00