gold fell this Tuesday, September 5, and registered his third drop in a rowreaching his lowest value in a week. This decline was due to the high demand for Dollars by investors, who reacted to the increase in the bond yield Yet the dollar appreciationsearching coverage in front of concerns about global economic growth.
He spot gold went down a 0.6% to $1,927.69 per ounce, which marked the biggest daily drop since mid august. The gold futures American ceded a 0.7% to $1,953.20.
dollar vs. gold
He nervous about global growth specially in China and the Euro zone made the dollar was a safe haven and will reach multi-month highs against a basket of currencies, making gold more expensive for foreign buyers.
“The global bond yields are going up strong in all areas and it seems that there is the concern that global growth could worsen furtherwhich is bringing everyone back to the dollarsaid Edward Moya, OANDA Markets Analyst.
“The theme of the global growth slowdown will end up being positive for the earOr, and that will only happen when the market becomes more skeptical about the risks of a recession in the United States,” he added.
according to the tool FedWatch of CMEoperators see a 95% of probabilities that the Fed keep rates unchanged at the monetary policy meeting on September 19 and 20, and about a 60% of probabilities that the rates remain in the current levels for the rest of the year.
He goldwhich does not pay interest, tends to lose appeal when interest rates rise. Attention will also focus on comments from officials of the fed who are expected to speak during the week.
He Federal Reserve Governor Christopher Wallersaid Tuesday in an interview with CNBC that the latest series of economic data is giving the central bank space to see if you need to raise rates again.
Among other precious metals, the silver spot yielded 1.5% to $23.60 the ounce, recording its largest daily drop in a month, the platinum fell 2.9%, to u$s926.81 and the palladium it fell 0.8%, to u$s1,211.22.
Source: Ambito
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