Gold sinks to one-month low as dollar soars
Bullion has fallen more than 11% from its April peak, as the US-China trade war sent investors flocking to the greenback
Bengaluru — Gold fell for a seventh straight session on Monday, hitting its lowest in a month as the dollar jumped to 16-month highs on the back of political uncertainty in Europe and the US Federal Reserve’s hawkish stance on interest rates. Spot gold fell 0.2% to $1,206.55 an ounce at 11.10am GMT, having touched a one-month low of $1,203.36 earlier in the session. US gold futures edged 0.2% lower to $1,206.6 an ounce. “The main driver has been some renewed dollar strengthening ... due to political uncertainty in UK and Italy,” said Saxo Bank analyst Ole Hansen. “Gold is facing a bit of an uphill struggle due to the dollar strength.” The metal posted its biggest weekly drop since August last week after the Fed reaffirmed its monetary tightening stance, seen as a negative for non-yielding bullion. The dollar index, which measures the greenback against a basket of six major currencies, was up 0.5% on Monday. The greenback benefited from a broader move away from riskier assets due to ...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.