NVDA Q3 Earnings Alert: Why our AI stock picker is still holding Nvidia stockRead More

PRECIOUS-Gold languishes at 2-month low as dollar rallies

Published 24/09/2020, 02:33 pm
© Reuters.
XAU/USD
-
XAG/USD
-
DX
-
GC
-
SI
-
PA
-
PL
-
DXY
-

* Silver slumps as much as 5.4%

* U.S. weekly jobless claims due at 1230 GMT

* Interactive graphic tracking global spread of coronavirus: https://graphics.reuters.com/world-coronavirus-tracker-and-maps/ (Adds comments, updates prices)

By Eileen Soreng

Sept 24 (Reuters) - Gold fell on Thursday to its lowest level in more than two months, crippled by a robust dollar, while investors fretted over uncertainties surrounding further stimulus measures to support a sluggish economy in the United States.

Spot gold XAU= fell 0.3% to $1,857.36 per ounce at 0747 GMT. Earlier in the session, it hit its lowest since July 22 at $1,847.99. U.S. gold futures GCv1 were down 0.4% at $1,860.70.

The dollar index .DXY hit a two-month peak against rival currencies. A firmer dollar makes bullion more expensive for holders of other currencies. USD/

"Gold can't shake off this dollar dominance, that is reverberating across all asset classes," said Edward Moya, a senior market analyst at OANDA.

Meanwhile, U.S. Federal Reserve officials tried to convince investors they will keep monetary policy easy for years to allow unemployment to fall, but analysts say immediate support is unlikely before the U.S. elections. stimulus side of this trade is looking rather bleak in the short term," Moya said.

Optimism over a nascent economic recovery soured as data showed business activity in the United States and Europe cooled in September as the pandemic continued to batter activities. might see gold decline to $1,800-$1,780 on the downside, but beyond that once markets start focusing on its safe-haven appeal, gold should start to rally again," said Harshal Barot, senior research consultant for South Asia at Metals Focus.

Investors are now awaiting U.S. weekly jobless claims data, due later in the day, which is expected to show claims fell slightly but remained at high levels. silver XAG= fell as much as 5.4% to $21.64, its lowest in more than two months, and was last down 2.9% at $22.21. Platinum XPT= firmed 0.5% to $842.50 per ounce and palladium XPD= was flat at $2,221.13.

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.