Gold falls to two-month low as dollar extends advance

Gold falls to two-month low as dollar extends advance

Archive image of a gold ingot measurement at the Ahlatci refinery in Corum, Turkey.

© Reuters/Umit Bektas
File image of a gold bar measuring at the Ahlatci refinery in Corum, Turkey.

By Nakul Iyer

Sep 24 (Reuters) – Gold fell to a more than two-month low on Thursday, weakened by a strong dollar and amid analyst comments that the absence of additional stimulus measures reduces bullion’s attractiveness.

* At 0929 GMT, spot gold was down 0.6% at $ 1,851.85 an ounce, extending its losses for the fourth session. Earlier in the day, it hit its lowest level since July 22, at $ 1,847.99.

* For its part, gold futures in the United States fell 0.8%, to $ 1,854.30 an ounce.

* “As long as the greenback regains strength, the bullion will continue to lose,” said Carlo Alberto De Casa, chief analyst at ActivTrades.

* Although it would be premature to declare the “beginning of a new bearish movement”, the next few days will be decisive to see whether gold can rebound to $ 1,860 or continue its decline, he added.

* The dollar index, which compares the greenback with six prominent currencies, maintained its recent gains, making the bullion more expensive for holders of other currencies.

* In addition to the uncertain outlook for the gold metal, statements from Federal Reserve authorities reaffirmed their monetary policy of low interest rates until the labor market recovers or inflation accelerates to 2%, although they did not provide a route of greater stimulus.

* In other precious metals, silver fell 5.4% to $ 21.64 an ounce, its lowest since July 22, and then fell 3.3% to $ 22.12; platinum rose 0.3% to $ 840.99 after hitting its lowest level in more than two months at $ 827.5; and palladium was down 0.1% at $ 2,218.52.

(Reported by Nakul Iyer and Eileen Soreng in Bengaluru; edited in Spanish by Carlos Serrano)


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