Precious gold drops to one-month lows as American Dollar extends rally

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Precious gold drops to one-month lows as American Dollar extends rally

On Thursday, the precious safe-haven spot gold futures faltered as much as 0.5 per cent to one-month lows, in part due to a stronger dollar which gained over rosy economy data alongside a lack of transparency over the next-round of trillion-dollar US stimulus bill.

Adding further strains, worries over an upsurge in the pandemic cases across a number of major global economies including the US, Germany and France, had weighed heavily on investors’ sentiments. On top of that, a raft of uncertainties brewing over the November 3 Presidential election, which had every potentiality to end up in a courtroom battle, had helped the American currency to regain its safe-haven bid, though several Wall St.

analysts suggested that the US Dollar-buying spree would likely to be short-lived. In tandem, White House Chief Economic Adviser Kudlow was quoted saying earlier in the day that any pandemic relief bill would have to wait until the fiercely contested November 3 US Presidential election, ratcheting up a sell-off wave further for the precious metal.

Precious yellow metal muddles as US Dollar extends gains

In point of fact, Thursday’s fall in the precious metal’s prices accelerated in the early US trading hours after the US Commerce Department had revealed that the world’s No.

1 economy grew about 33 per cent over the third quarter of the year, while a marginal improvement in jobless claims had also aided in American Dollar’s cause, eventually leading to a moderation in the gold futures’ prices.

Citing statistics, on Thursday’s commodity market round off, spot gold futures’ prices had wrapped up the day 0.4 per cent down to $1,869.94 an ounce after diving to an intra-session low of $1,858.92 per ounce, a level never seen since the 28th of September, while the US gold futures’ prices tumbled 0.5 per cent to $1,869.90.

Among other precious metals, sliver slid 0.5 per cent to $23.28 an ounce, its lowest level in more than a month, and platinum futures’ prices were jolted 2.5 per cent to $845.90, while palladium plunged as much as 1.8 per cent to wrap up the day at $2,196.59 an ounce.

Besides, adding holocaust to gold’s safe-haven appeal, US Dollar Index (DXY) measured against a basket of six major currencies on an average, jumped 0.4 per cent to its four-week peak of 93.81. Meanwhile, adding that a stronger American Dollar had nudged the precious safe-haven metal down to its one-month lows, founder of Circle Squared Alternative Investments, Jeffrey Sica said, “The downturn we are seeing in gold prices is because there is a short-term concern about timing of the stimulus getting approved.