The strength of the dollar is pressuring gold and causing it to fall to its lowest level in 7 months
Gold continued its losses, today, Monday, for the sixth session in a row, reaching its lowest level in about 7 months in light of the continued rise of the dollar, traders’ assessment of a major report on inflation in the United States, and their anticipation of a number of labor market data scheduled to be issued this week.
Gold fell in instant transactions by 0.4% to $1,840.49 per ounce, by 05.45 GMT, its lowest level since March 10. US gold futures fell 0.5% to $1,856.20.
Last week, the precious metal recorded the largest weekly decline since June 2021, ending the third quarter with a decline of 3.7%.
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As for other precious metals, silver fell in spot transactions 2.1% to the lowest level in more than 6 months at $21.69 per ounce, while platinum fell 0.4% to $900.71 and palladium fell 1.1% to $1232.11.
The dollar is at a 10-month high
In the currency market, the dollar started the last quarter of the year strong, today, Monday, amid the possibility that US interest rates will remain high for a longer period, while the yen fell to its lowest level in nearly a year, prompting traders to anticipate intervention from the Japanese authorities.
The yen fell to $149.83, its weakest level in more than 11 months, getting closer than ever to the $150 level, which some traders believe may lead to intervention by the Japanese authorities, as happened last year, to support the currency.
The euro also fell 0.06% to $1.05665 after ending the previous quarter down 3%, the worst performance in a year.
The British pound fell 0.14% to $1.21875, after similarly falling by about 4% against the dollar in the third quarter.
However, the dollar index did not rise much from the highest level in ten months that it recorded recently, reaching 106.27 in the latest trading, after recording the best quarterly performance in a year last month, supported by the Federal Reserve (the US central bank) continuing its monetary tightening approach.
The US Congress passed a temporary funding bill late on Saturday, with overwhelming support from Democrats, in an attempt to avoid the fourth partial shutdown of the federal government in a decade.
The Australian dollar also fell by 0.47% to $0.64045, as well as the New Zealand dollar by 0.19% to $0.5987, as traders await interest rate decisions from the two countries’ central banks this week.
(Reuters, Al-Arabi Al-Jadeed)
2023-10-02 09:46:05
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