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Gold hits new low as dollar stands tall; Spot gold reaches $1,638.59 per ounce

Gold hits new low as dollar stands tall; Spot gold reaches $1,638.59 per ounce

Spot gold was down 0.3% at $1,638.59 per ounce, as of 0053 GMT, after hitting its lowest level since April 2020 earlier in the session. 

Reuters
  • Updated Sep 26, 2022 8:13 AM IST
Gold hits new low as dollar stands tall; Spot gold reaches $1,638.59 per ounceUS gold futures fell 0.6% to $1,645.8.

Gold prices fell to a new 2-1/2-year low on Monday, weighed down by a sturdy dollar and prospects of further interest rate hikes by the US Federal Reserve to bring down inflation. 

FUNDAMENTALS

* Spot gold was down 0.3% at $1,638.59 per ounce, as of 0053 GMT, after hitting its lowest level since April 2020 earlier in the session. 

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* US gold futures fell 0.6% to $1,645.8.

* The dollar index scaled a fresh peak since 2002 buoyed by a hawkish Fed, making the greenback-priced bullion more expensive for buyers holding other currencies. 

* Higher interest rates dull bullion's appeal since the metal yields no interest. Gold prices have fallen more than 20% since scaling above the key $2,000 per-ounce mark in March. 

* Atlanta Fed President Raphael Bostic said on Sunday he still believes the US central bank can tame inflation without substantial job losses given the economy's continued momentum. 

* A downturn in business activity across the euro zone deepened in September, according to a survey which showed the economy was likely entering a recession as consumers rein in spending amid a cost of living crisis.

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* Gold premiums in top consumer China climbed last week, helped by strong demand for bullion, while prices in India traded at a discount for the first time in four weeks due to an uptick in domestic rates. 

* Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell 0.31% to 947.23 tonnes on Friday.

* Spot silver fell 0.8% to $18.68 per ounce, platinum rose 0.7% to $860.13, and palladium gained 0.4% to $2,076.10. 

Published on: Sep 26, 2022 8:13 AM IST
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