Gold price dips on dollar gains
2020-09-08 23:07:22
Gold prices eased on Monday as the dollar made gains, although economic uncertainties kept it from falling further as investors await developments from central banks.
Spot gold was down 0.3% to $1,926.49 per ounce by 1 p.m. EDT, while US gold futures steadied at $1,935.80 per ounce, with North American markets shut for the Labor Day holiday.
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Meanwhile, the dollar index rose 0.3%, making gold more expensive for those holding other currencies.
GOLD IS LIKELY TO TRADE SIDEWAYS AS RECESSIONARY FEARS HAVE ALREADY BEEN PRICED IN
“A higher dollar is weighing on gold, while longer-term uncertainties still persisting in the market is putting a floor under prices,” Carsten Menke, analyst at Julius Baer, told Reuters.
“Gold is likely to trade sideways as recessionary fears have already been priced in and investors are now waiting to see what happens next in term of central bank policies,” Menke added.
Central banks around the globe have cut interest rates to tackle the coronavirus crisis, with gold gaining over 27% this year as lower interest rates decrease the opportunity cost of holding non-yielding bullion.
Link:
https://www.mining.com/gold-price-dips-on-dollar-gains/
