Gold Slips For Fourth Day As Dollar Extends Advance
Gold fell on Thursday to its lowest level in more than two months as the dollar extended gains to a near two-month high amid concerns over weakening economic growth and uncertainty over stimulus package.
Spot gold dropped 0.6 percent to $1,852.19 per ounce, extending declines for the fourth straight session. U.S. gold futures were also down 0.6 percent at 1,857.30 per ounce.
Rising Covid-19 infections in Europe coupled with uncertainties surrounding the U.S. presidential elections and the U.S. stimulus package dented risk sentiment and fueled the dollar’s safe-haven demand.
Signs of an economic slowdown in Europe and the United States revived concerns about the fallout from a second wave of Covid-19 infections.
Speculation is rife that the U.S. Congress would not agree extra fiscal stimulus to counter the ongoing Covid-19 crisis in the run up to the November election.
Investors await U.S. reports on weekly jobless claims and new home sales as well as additional testimony from Powell and Treasury Secretary Steven Mnuchin later in the day for additional clues about the economic outlook.