Gold Back to $1227 as Demand Dries Up

Gold retreated for a second day on concern prices that climbed to a four-week high may deter purchases as the euro weakened against the dollar on signs the region’s economy is faltering.

Gold for immediate delivery fell as much as 0.4 percent to $1,227.79 an ounce, and traded at $1,228.18 at 8:53 a.m. in Singapore, according to Bloomberg generic pricing. The metal rose to $1,238.30 yesterday, the highest since Sept. 17, before ending lower as oil slumped to a two-year low, damping demand from investors who view gold as a hedge against inflation.

The Bloomberg Dollar Spot Index advanced for a second day as the euro slid against the greenback after Germany cut its growth outlook and investor confidence in Europe’s largest economy fell for a 10th month. Bullion rallied from this year’s low of $1,183.24 on Oct. 6 on speculation the Federal Reserve may delay interest-rate increases amid slowing global growth.

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.