Gold Suffers as US Data Proves Stronger Than Expected

 

After coming close to but ultimately failing to breach the $2,000 mark again Tuesday, gold has slumped as stronger-than-expected U.S. economic data has lifted the dollar, and presented a fresh headwind for the precious metal. New York futures are down 0.6% at $1,966.70 a troy ounce as the U.S. dollar index rises 0.3% to 92.60. The dollar was back up after U.S. ISM manufacturing PMI for August came in better than expected. Gold could be witnessing another correction, says Jeffrey Halley, an analyst at Oanda, as it is failing to get a lift from lower U.S. real yields which have typically been a source of strength for the metal.