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The deposit closed at a two-month low as the dollar rose strongly.
Sep 24,2020 08:28CST
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Source:Dow Jones
The content below was translated by Tencent automatically for reference.

SMM: COMEX futures closed at a two-month low on Wednesday as the dollar strengthened and investors waited for further responses from major central banks in times of economic uncertainty.

Monthly gold futures in COMEX12, the most actively traded, fell 39.2 U.S. dollars, or 2.1 percent, to settle at $1868.40 an ounce at 13:30 new York time.

December silver futures fell $1.418 to settle at $23.105 an ounce.

October platinum futures fell $14.40 to settle at $843.0 an ounce.

December palladium futures rose $28.70 to settle at $2258.30 an ounce.

In addition, the COMEX12 monthly copper contract fell 6.80 cents to settle at $2.9930 a pound.

Precious metals prices have been under selling pressure since the start of the week as rising cases of COVID-19 in Europe and the US prompted investors to lift profitable bets on gold and silver and turn to the dollar, further depressing gold buying.

"Gold prices are currently affected by the trend of the dollar," said SukiCooper, an analyst at Standard Chartered Bank. The stronger dollar continues to put pressure on gold. "

"We may retest the low since early August, after which the next technical support is about $1840 an ounce, but gold is approaching the oversold area."

The dollar index hit an eight-week high, undermining gold's attractiveness to investors holding other currencies. The dollar rose for a fourth consecutive day on Wednesday, rising to an eight-week high as US stocks fell and investors questioned the pace of the global economic recovery in the face of rising novel coronavirus cases and weak economic data in Europe. and try to cope with US policy uncertainty.

"the stronger dollar is putting pressure on gold and there is no stimulus package in Washington, but we believe that gold is fundamentally and technically oversold and we will not go short here," EdwardMeir, an analyst at ED&FManCapitalMarkets, wrote in a report.

Although the US stock market fell after data showed a slight decline in US business activity in September, the price of gold fell.

Federal Reserve Vice Chairman Clarida said on Wednesday that policymakers "won't even start thinking about raising interest rates" until inflation reaches 2%.

Cleveland Fed President Mestre said monetary policy will need to remain loose in the coming years and more fiscal stimulus will be needed to support the economy.

A wide range of stimulus measures have made gold more attractive as a hedge against inflation and currency weakness.

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