Gold Hits 6-week Trough Amid Strong Dollar
Gold prices moved lower on Wednesday to hover near six-week low as the U.S. dollar hit a two-month high on persistent worries about the global economic recovery.
Spot gold was down 0.3 percent to $1,894.06 per ounce, after having fallen more than 1 percent to hit its lowest level since Aug. 12 at $1,873.30 earlier in the session. U.S. gold futures were down half a percent at $1,897.30 per ounce.
Federal Reserve chairman Jerome Powell told the U.S. House Financial Services Committee on Tuesday the world’s largest economy has a long way to go before fully recovering from the coronavirus pandemic.
Separately, U.S. Treasury Secretary Steven Mnuchin said he and the White House continue to seek an agreement with both parties in Congress on another fiscal relief package.
Investors await surveys of purchasing managers and a second day of congressional testimony by Powell for further direction.
Data showed earlier in the day that the euro area private sector stagnated in September. The composite output index declined to 50.1 in September from 51.9 in August. Economists had forecast the reading to drop to 51.7.