Gold Down on Stronger Dollar


GGold was up on Wednesday morning in Asia following a rise in the dollar. The greenback was supported by a strong U.S. housing market, against rising global COVID-19 cases. Gold futures were down 1.01% at $1,888.04 by 12:46 PM ET (4:46 AM GMT). The latest housing market figures from the U.S. gave the dollar a boost on Wednesday, with sales passing the 6 million mark, the highest number in 14 years. The U.S. House of Representatives has passed a bill to maintain government spending ahead of a shutdown, bringing positive news for the dollar, to gold’s loss. The rise of COVID-19 cases in Europe and the U.S. have also pushed investors toward the greenback, with France, Spain and the U.K. all dealing with a resurgence in cases. The U.K. has already introduced new restrictions, and is considering reinstating the earlier, stricter lockdown. The swell of investors heading for the greenback has come at the expense of gold this time, with the recent sell-off in stocks having levelled that market. The rise in the dollar also makes gold more expensive for traders using other currencies. Investors are now awaiting the latest U.S. non-farm payroll data to suggest if there has been an improvement in the U.S. economy. The results are due on Oct 2.

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