Stronger US dollar pushes gold price lower

Australian gold prices are at record highs.

Gold prices have fallen overnight as the US dollar rallied.

According to a CommSec report, the gold futures price fell by $US25.10 ($31.87), or 1.9 per cent, to $US1331.20/ounce (oz) in Tuesday’s trading.

Meanwhile, spot gold prices were also lower as the greenback rallied, falling by $US16.31 to $US1330.15/oz. In Aussie dollar terms, the spot gold price fell by $14.12 to $1687.64/oz.

The value of gold and the US dollar generally move in the opposite direction, with the greenback rising on this occasion because of higher Treasury bills and notes rates.

Despite the falls, the spot gold price is this year 2.1 per cent higher in US dollar terms and 1.1 per cent ahead in the Aussie currency.

In other commodities, the benchmark 62 per cent iron ore price was unchanged at $US77.50/tonne, 4 per cent higher so far in 2018.

Most base metals were lower, particular nickel, which recorded a 3.9 per cent loss. Copper, lead, zinc and tin also fell.

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