Gold hits 2-1/2-year low as dollar stands tall
Add BT as a preferred source
GOLD prices fell to a new 2-1/2-year low on Monday (Sep 26), weighed down by a sturdy dollar and prospects of further interest rate hikes by the US Federal Reserve to bring down inflation.
Spot gold was down 0.3 per cent at US$1,638.59 per ounce, as of 12.53 am GMT, after hitting its lowest level since April 2020 earlier in the session.
US gold futures fell 0.6 per cent to US$1,645.8.
The dollar index scaled a fresh peak since 2002 buoyed by a hawkish Fed, making the greenback-priced bullion more expensive for buyers holding other currencies.
Higher interest rates dull bullion’s appeal since the metal yields no interest. Gold prices have fallen more than 20 per cent since scaling above the key US$2,000 per-ounce mark in March.
Atlanta Fed president Raphael Bostic said on Sunday he still believes the US central bank can tame inflation without substantial job losses given the economy’s continued momentum.
Navigate Asia in
a new global order
Get the insights delivered to your inbox.
A downturn in business activity across the euro zone deepened in September, according to a survey which showed the economy was likely entering a recession as consumers rein in spending amid a cost of living crisis.
Gold premiums in top consumer China climbed last week, helped by strong demand for bullion, while prices in India traded at a discount for the first time in 4 weeks due to an uptick in domestic rates.
Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.31 per cent to 947.23 tonnes on Friday.
Spot silver fell 0.8 per cent to US$18.68 per ounce, platinum rose 0.7 per cent to US$860.13, and palladium gained 0.4 per cent to US$2,076.10. REUTERS
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Share with us your feedback on BT's products and services
