Gold prices take a hit on US dollar hike, banks' stimuli

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Gold prices take a hit on US dollar hike, banks' stimuli

As international central banks did their best to revive their respective country’s economy from crashing, their efforts were reflected in the prices of gold that fell on Monday, 19th August. The increase in the value of the US dollar also contributed to this fall in the yellow metal’s prices.

Spot gold fell to around $1507, a dip of about 0.4 per cent. Elaborating on the reasons for the price’s fall, analyst Jeffrey Halley said, “The dollar is getting stronger, and given that gold had a very good rally over the last few weeks, we are just seeing some profit-taking coming in”.

Reuters further quoted him as saying, “There is still plenty of interest to buy gold on any dips as a hedge against uncertainty in the global economy”. Meanwhile, trade uncertainties continue to loom around the United States and China after the US President Donald Trump said that a trade agreement with China could not be reached until the Asian country resolved the issue involving Hong Kong’s pro-democracy protests.

Apart from the value of gold, the price of silver also fell by around 0.6 per cent to a value of about $17 an ounce. Palladium and platinum’s values, however, increased. The former’s rose by around 0.5 per cent while the latter’s increased by around 0.2 per cent.