Gold Loses Ground on Strong USD and Easing Tensions

Gold traded little changed near a three-month low in New York as a stronger dollar cut demand and investors weighed signs of easing tensions over Ukraine. Platinum reached the lowest price in four months.

Gold has fallen 5 percent this quarter on the outlook for higher U.S. borrowing costs, while the Bloomberg Dollar Spot Index, which tracks the greenback against a basket of 10 major currencies, reached the highest since July 2013 today. Federal Reserve policy makers will meet Sept. 16-17.

Demand for a haven helped gold reach an almost four-month high on July 10. European Union governments put on hold for at least a “few days” new sanctions against Russia, allowing more time to assess the viability of a cease-fire in Ukraine without risking further trade retaliation by Russia. A Sept. 5 cease-fire between the Ukrainian government and pro-Russian separatists has raised the prospect of a lasting truce.

“It would seem that for the time being at least, the dollar has once again become the main driver,” David Govett, head of precious metals at Marex Spectron Group in London, said in a note today. “Headlines will move prices, but it does seem as though the trouble spots in the world have been quiet as of late.”

Gold for December delivery added 0.2 percent to $1,256.40 an ounce by 7:20 a.m. on the Comex in New York. It fell to $1,252.10 yesterday, the lowest since June 10. Bullion for immediate delivery was little changed at $1,255.88 in London, according to Bloomberg generic pricing.

via Bloomberg

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.