The dollar improved Tuesday as investors continued to assess the outlook for US interest-rate increases this year.
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The dollar index, which measures the greenback against six major currencies, was up 0.56 per cent at 95.116 in late trading, the highest level in three weeks.
Spot gold was down 0.3 percent at $1,318.77 an ounce at 1400 GMT, while USA gold futures for December delivery were down $6.10 an ounce at $1,321.10.
Fischer’s comments on negative rates come days after Chair Janet Yellen left the subject out of a speech on the future USA monetary policy toolkit, suggesting that they’re not an option that’s up for discussion at the Fed.
The Conference Board said its consumer confidence index rose to 101.1 this month, an 11-month high. GDP figures for June that are also set for release on Wednesday are expected to show growth picked up by 0.4 percent, which should bolster expectations that the economy will rebound in the third quarter.
In her Jackson Hole comments, Yellen said the USA economy is improving, strengthening the case for an increase in interest rates this year. The data, which beat economists’ expectations for a dip to 97.0 according to a Reuters poll, stoked expectations that the Fed could raise rates this year after top Fed officials have said recently that such a move was possible. “We had a bit more hawkish tone from Yellen at Jackson Hole and that was reinforced by Fischer”, said Mark McCormick, North American head of FX strategy at TD Securities in Toronto.
Hershey shares tumbled after Mondelez International said late on Monday it has ended its bid to buy the chocolate maker.
Apple dragged down United States technology stocks after European Union antitrust regulators ordered the iPhone maker to pay about $US14.5 billion ($A19.3 billion) in back taxes to the Irish government.
Treasury prices gained slightly Tuesday, as oil and equities retreated, leading yields to reverse an earlier advance following hawkish comments by Federal Reserve Vice Chairman Stanley Fischer. The S&P 500 ended down 4.26 points, or 0.2 per cent, at 2,176.12. Stock-trading volume hit its lowest level of the year on Monday and is expected to continue to be fairly thin as investors and traders typically vacation ahead of the U.S. Labor Day holiday. US gold futures for December delivery settled down 0.8 percent at $1,316.5 per ounce.
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At the same time oil prices fell as the dollar strengthened, making crude imports more expensive for holders of other currencies. West Texas Intermediate crude dropped 1.7% to $48.43 per barrel and Brent fell 1.14% to $46.45 per barrel at 2052 BST.
