Gold Continues Slide on Strong Dollar, Low Rates and European COVID-19 Numbers By

© Reuters.

By Adam Claringbull – Gold continued down on Thursday morning in Asia with a further strengthening assisting its fall. The greenback was supported by a strong U.S. housing market, and concerns over risk in other markets. The metal has hit its lowest price in two months.

were down 0.37% at $1,860.50 by 11:47 AM ET (3:47 AM GMT).

A general slowdown in Europe, alongside concerns expressed by U.S. state and U.S. Federal Reserve officials about the need for further stimulus measures, pushed gold prices down overnight to a two-month low. Gold fell through the $1,900 mark as risk-averse investors sought stability in the greenback. The Fed’s decision to keep interest rates low for the foreseeable future also added to the precious metal’s descent.

Stocks across the globe also felt the pressure, with all markets down as the uncertainty over global economic recovery from the COVID-19 grows. The latest European purchasing manager indexes (PMI) gave rise to serious worries about the region’s recovery prospects, with the falling through the 50-mark separating growth from contraction.

COVID-19 cases continue to rise in Europe, with concerns that some E.U. countries are now seeing the beginning of the second wave coinciding with the onset of the flu season. Germany’s will be released later in the day, giving some insight into how the E.U.’s largest economy is faring.

“We have a very serious situation unfolding before us,” said Dr Hans Kluge, the World Health Organization’s regional director for Europe, on Thursday. He was speaking as he revealed Europe’s number of weekly infections was higher now than at the first peak in March.

The latest is due on October 2, and investors are looking to it to see if there has been an improvement in the U.S. economy.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

{n.callMethod? n.callMethod.apply(n,arguments):n.queue.push(arguments)};
s.parentNode.insertBefore(t,s)}(window, document,’script’,
fbq(‘init’, ‘751110881643258’);
fbq(‘track’, ‘PageView’);

by :

Source link

Capital Media

Read Previous

Govt proposes special tax incentives for FPIs choosing Gift City over Singapore & Mauritius

Read Next

les titres d’emprunt du Trésor public sont les moins rentables d’Afrique subsaharienne