🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

PRECIOUS-Gold dips on dollar strength, cenbank meetings in focus

Published 09/09/2020, 02:05 pm
Updated 09/09/2020, 04:48 pm
© Reuters.
XAU/USD
-
XAG/USD
-
DX
-
GC
-
SI
-
PA
-
PL
-
DXY
-

* Dollar hits near one-month high

* Tech rout roils Asian shares

* Interactive graphic tracking global spread of coronavirus: open https://tmsnrt.rs/3aIRuz7 in an external browser (Recasts, adds technicals, updates prices)

By Brijesh Patel

Sept 9 (Reuters) - Gold prices slipped on Wednesday as a stronger dollar offset support from a pullback in global equities, while investors awaited monetary policy strategies from central banks this week.

Spot gold XAU= was down 0.3% at $1,925.97 per ounce by 0616 GMT. U.S. gold futures GCcv1 fell 0.5% to $1,933.80.

"Traders in Asia will adopt a cautious tone, preferring to wait for New York to open and clearer evidence as to whether the USD rally and stock market sell-off will continue," said Jeffrey Halley, a senior market analyst at OANDA.

"However, a deeper correction below $1,900 cannot be ruled out if the dollar stays strong," he added.

Weighing on gold's appeal, the dollar index .DXY rose to a near one-month high against its rivals. USD/

But bullion found some support as Asian shares weakened, following a tech-led selloff on Wall Street on Tuesday that had forced investors to seek safe havens. MKTS/GLOB

Investors now await the outcome of the European Central Bank's policy meeting, due on Thursday. While no major policy moves are expected since it has acted aggressively to shore up the virus-hit economy, investors will watch out for its inflation forecasts. is used as a hedge against inflation and currency debasement.

The Bank of Canada's policy meeting is also on Wednesday, while the U.S. Federal Reserve's meeting is scheduled for next week.

On the technical front, spot gold is expected to retest a support at $1,906 per ounce, a break below which could cause a fall to $1,880, said Reuters technical analysts Wang Tao. TECH/C

Elsewhere, platinum XPT= was down 0.1% at $900.57 per ounce. On Tuesday, the World Platinum Investment Council changed its forecast for the market in 2020 from a surplus to a deficit. XAG= dipped 0.2% to $26.65 per ounce, while palladium XPD= rose 0.5% at $2,284.75.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ gold

https://tmsnrt.rs/3bDiOj7

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.