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The rise of the US dollar drags down spot gold slightly, following the policy developments of central banks.
Sep 8,2020 09:03CST
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Source:Dow Jones
The content below was translated by Tencent automatically for reference.

SMM: spot gold fell during the European session on Monday, dragged down by the rise of the dollar, but economic uncertainty limited the decline, investors pay attention to the dynamics of the central bank.

Spot gold is now down 0.16 per cent to $1929.51 an ounce, further off the one-week low of $1916.24 hit on Friday.

Us gold futures rose 0.04 per cent to $1935.10 an ounce.

U. S. financial markets were closed Monday for International Labour Day's holiday.

"the rise of the dollar has depressed gold prices, but longer-term uncertainty remains, supporting gold prices," said CarstenMenke, an analyst at (JuliusBaer) at Julius Baer.

Gold prices are likely to remain volatile, fears of recession have been digested by the market, and investors are waiting for new developments in central bank policy, he said.

The dollar index rose 0.3%, weakening the buying interest of non-dollar holders.

In order to mitigate the impact of the novel coronavirus epidemic on the economy, a number of central banks around the world, including the Federal Reserve, have launched large-scale stimulus measures and cut interest rates to near zero. As a result, the price of gold has risen more than 27% so far this year.

Investors are paying attention this week to the ECB's monetary policy decision, which is due to be released on Thursday.

EugenWeinberg, an analyst at Commerzbank (Commerzbank), said, "it will not be surprising if gold prices break away from the lower end of this channel and continue to rise in the coming weeks. However, if there are better expectations for US economic data, the price of gold does not rule out the possibility of falling below $1900. "

However, sluggish physical demand is still bad for gold prices. India, the world's second-largest gold consumer, has surpassed Brazil in the number of confirmed cases by COVID-19 to become the second-highest number of cases in the world after the United States. Investors are paying attention this week to the ECB's monetary policy decision, which is due to be released on Thursday.

Weinberg believes that India's gold imports in August are good, and that recent price movements have not been stimulated and supported by physical demand for gold bars and coins, but exchange-traded funds have played a role.

Among other varieties, spot silver fell 0.44 per cent to $26.76 per ounce, platinum rose 0.26 per cent to $897.81 per ounce, and palladium rose 0.79 per cent to $2315.04 per ounce.

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