You are here

Gold extends losses to fourth day on US dollar rally

rk_gold_240920.jpg
Gold fell on Thursday to its lowest level in more than two months, crippled by a robust US dollar, while investors fretted over uncertainties surrounding further stimulus measures to support a sluggish economic recovery in the United States.

[BENGALURU] Gold fell on Thursday to its lowest level in more than two months, crippled by a robust US dollar, while investors fretted over uncertainties surrounding further stimulus measures to support a sluggish economic recovery in the United States.

Spot gold was down 0.4 per cent to US$1,855.72 per ounce by 3.51am GMT, extending falls into a fourth session. Earlier in the session, it hit its lowest since July 22 at US$1,853.32.

US gold futures were down 0.3 per cent to US$1,863.60.

The dollar index held firm near a more than eight-week high against rival currencies, as signs of an economic slowdown in Europe and the United States revived concerns about the fallout from a second wave of Covid-19 infections.

A firmer dollar makes bullion more expensive for holders of other currencies.

Your feedback is important to us

Tell us what you think. Email us at btuserfeedback@sph.com.sg

"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, US Federal Reserve officials tried to convince investors they will keep monetary policy easy for years to allow unemployment to fall.

"It seems the Fed has pretty much tied themselves into no immediate action... So, the stimulus side of this trade is looking rather bleak in the short term," Mr 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.

Spot gold is likely to break a support at US$1,855 per ounce and fall to US$1,835, according to Reuters technical analyst Wang Tao.

Investors are now awaiting US weekly jobless claims data, due later in the day, which is expected to show claims fell slightly but remained at high levels.

Elsewhere, silver fell as much as 5.3 per cent to US$21.66, its lowest in more than two months, and was last down 3.4 per cent at US$22.10.

Platinum rose 0.1 per cent to US$839.29 per ounce and palladium was little changed at US$2,222.52.

REUTERS

BT is now on Telegram!

For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes