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Last Updated : Sep 24, 2020 05:17 PM IST | Source: Reuters

Gold extends losses to fourth day on dollar rally

Spot gold was down 0.4% to $1,855.72 per ounce by 0351 GMT, extending falls into a fourth session. Earlier in the session, it hit its lowest since July 22 at $1,853.32.

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 economic recovery in the United States.

Spot gold was down 0.4% to $1,855.72 per ounce by 0351 GMT, extending falls into a fourth session. Earlier in the session, it hit its lowest since July 22 at $1,853.32.

U.S. gold futures were down 0.3% to $1,863.60.

Close

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.

"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.

"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," 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 $1,855 per ounce and fall to $1,835, according to Reuters technical analyst Wang Tao.

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.

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

Platinum rose 0.1% to $839.29 per ounce and palladium was little changed at $2,222.52.
First Published on Sep 24, 2020 10:39 am
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