US presidential debate chaotic, spot gold price closed down 0.3% to US $ 1,892 per troi ounce

ILLUSTRATION. Gold price scored its worst monthly performance after dropping 4% in September 2020

Source: Reuters | Editor: Anna Suci Perwitasari

KONTAN.CO.ID – NEW YORK. Spot gold prices closed slightly lower on Wednesday (29/9) trading. The negative catalyst for gold came after a chaotic first US presidential debate pushed investors into the United States dollar (US). This put the price of gold headed for its worst month in nearly four years.

Yesterday, spot gold prices closed down 0.3% to US $ 1,892.33 per troi ounce. As a result, gold prices fell by around 4% in September, and are on track for their worst monthly performance since November 2016.

Quarter three money, the price of gold futures contract for December 2020 delivery fell 0.4% to US $ 1,895.50 per ounce troi.

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“It looks like after last night’s debate, differences will probably form between the two sides again and the possibilities for any kind of stimulus may have diminished,” said Phillip Streible, Chief Market Strategist Blue Line Futures di Chicago.

The first US presidential debate between President Donald Trump and Democratic rival Joe Biden made investors wary and prompted them to seek refuge in US dollars. This also reduces the appeal of gold to holders of other currencies.

The dollar index accelerated and managed to score a strengthening this September, the best since July 2019.

“Every time the dollar index strengthens, we see a deflationary environment and that weighs on not only gold prices but also silver and many other commodities,” added Streible.

Despite the recent pullbacks, most analysts see an upward trajectory for gold in the medium to long term. The price of this precious metal is on track for an eighth consecutive quarterly advance.

“The good thing for gold is, with increasing uncertainty, more and more people want to own gold, and besides, it seems that some policies can continue, such as low and negative interest rates around the world,” said Michael Matousek, Head Trader US Global Investors.

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On the same day, the price of silver also dropped 3% to US $ 23.55 per ounce troi. While platinum strengthened 1.3% to US $ 895.99 and the price of palladium is still stable at US $ 2,309.20 per ounce troi.

Silver is on track for the worst month since September 2011, down about 17% so far this month. Meanwhile platinum was set for the biggest drop since March, down more than 3%.