You are here: Home » International » News » Economy
Business Standard

Gold drops to lowest in nearly 7 weeks; stronger dollar, equities drag

US gold futures for December delivery shed 0.5% to $1,277.80

Reuters 

Gold drops to lowest in nearly 7 weeks; stronger dollar, equities drag

slipped to its lowest in nearly seven weeks early on Monday as the rose and equities gained, while growing expectations for a Federal Reserve interest in December also added to pressure.

Spot was down 0.3 per cent at $1,274.90 an ounce by 0353 GMT, after earlier touching its lowest since mid-August at $1,273.55.

US futures for December delivery shed 0.5 per cent to $1,277.80.

The metal recorded its biggest monthly decline so far this year in September, despite netting a quarterly rise of nearly 3 per cent partly due to geopolitical tensions including North Korea's missile tests.

"The dollar is a bit stronger this morning and put under pressure first thing this morning so we took out Friday's low. China's out for Golden week so it's just moving on the back of what the dollar yen's doing," a Hong Kong-based trader said.

"might just keep drifting lower until the Chinese return. There's nothing really to excite at the moment."

US President on Sunday dismissed the prospect of talks with as a waste of time a day after his own secretary of state said the United States was maintaining open lines of communication with

The dollar stood tall against the and other major counterparts on Monday and Asian shares rose as investors kept an close eye on an independence vote in Spain's Catalonia.

The US currency recorded its best week of the year on Friday, despite benign inflation data for August, as expectations that the Fed would raise interest rates again in December loomed large after Fed Chair Janet Yellen said the central bank planned to stay on its current path.

Philadelphia Fed President Patrick Harker said Friday he still has "pencilled in" a in December, and three more hikes next year.

Higher interest rates tend to boost the dollar and push bond yields up, weighing on greenback-denominated

Spot may drop into a range of $1,261-$1,267 per ounce, as it has cleared a support at $1,277, Reuters technicals analyst Wang Tao said.

Speculators reduced their net long positions in COMEX and silver contracts in the week to Sept. 26, US showed on Friday.

Silver and palladium were little changed at $16.60 an ounce and $934.30 an ounce, while platinum lost 0.2 per cent at 907.40 and continued to trade at a discount to platinum for a fourth consecutive day.

First Published: Mon, October 02 2017. 16:39 IST
RECOMMENDED FOR YOU