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Gold closed below 1,800 dollars

Gold closed lower on Monday, falling to its lowest level in more than a week and below the psychological level of $1,800.

Analysts attributed the decline, in part, to a strengthening US dollar, with the ICE US Dollar index rising 0.8% in Monday’s trading, weighing on dollar-denominated prices of the precious metal.

In this climate, the December delivery gold fell $17.40, or 1%, to settle at $1,798.10 an ounce. Prices under the most active contract were at their lowest level since Aug. 5, according to FactSet data.

September delivery silver It lost 43 cents, or 2.1%, to $20.272 an ounce, also its lowest close since Aug. 5. Alongside, the September delivery copper lost 5 cents, or 1.4%, to $3.6175 a pound, the lowest since Aug. 3.

Meanwhile, the September delivery palladium fell $61.10, or nearly 2.8%, to $2,158.30 an ounce while the October delivery platinum slipped $28.80, or nearly 2.7%, to $933.60 an ounce.

Some analysts attributed gold’s decline to weak economic data from China, along with surprise interest rate cuts by the country’s central bank.

Meanwhile, Marc Chandler, chief market strategist at Bannockburn Global Forex, attributed gold’s retreat to renewed strength in the US dollar.

Gold’s failure to trade above $1,800 an ounce led to profit-taking, Chintan Karnani, director of research at Insignia Consultants, told MarketWatch.

Meanwhile, financial markets in India were closed on Monday to celebrate Independence Day, and Karnani said he believed the drop in gold prices was partly due to that shutdown. When Indian markets reopen on Tuesday, Indian demand for gold is expected to lift prices of the precious metal, he added.

Source: Capital

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