BUSINESS Gold down on stronger US dollar

BUSINESS

Gold down on stronger US dollar

Xinhua

07:10, October 29, 2020

CHICAGO, Oct. 28 (Xinhua) -- Gold futures on the COMEX division of the New York Mercantile Exchange fell on Wednesday as the U.S. dollar rose.

The most active gold contract for December delivery fell 32.7 U.S. dollars, or 1.71 percent, to close at 1,879.2 dollars per ounce.

Investors are now more interested in U.S. dollar as it is an interest bearing asset, compared to gold which is not.

Gold was under additional pressure as U.S. Department of Commerce reported on Wednesday that the U.S. trade deficit in goods fell 4.5 percent to 79.4 billion U.S. dollar in September from 83 billion dollars in August.

Stock indexes fell worldwide in reaction to rising COVID-19 cases in Europe and the United States. Normally equities fall would be supportive of gold, but investors moved to the U.S. dollar as a safe haven this time.

Silver for December delivery fell 1.21 dollars, or 4.93 percent, to close at 23.359 dollars per ounce. Platinum for January delivery fell 11.8 dollars, or 1.33 percent, to close at 875 dollars per ounce. 

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