- Write by:
-
Wednesday, June 30, 2021 - 13:10:27
-
447 Visit
-
Print
Mining News Pro - Gold prices fell on Tuesday to the lowest since mid-April as the US dollar firmed on mounting concerns about the delta coronavirus strain in Europe.
Spot gold dropped 1.0% to $1,759.72 per ounce by 11:20 a.m. ET, after falling to $1,751.22 earlier in the session. US gold futures were down 1.3% to $1,757.50 per ounce in New York.
The highly contagious virus strain that originated in India is fast becoming dominant in France and Germany. It has also become the main variant in South Africa’s commercially important Gauteng province, and close to half of Australia’s population is now in lockdown as it struggles to contain the delta variant.
A gauge of the US dollar strengthened on growing haven demand, adding pressure to bullion, which is widely seen as an alternative to the major currency.
The strength in the greenback “is a major drag on gold,” Commerzbank AG analyst Carsten Fritsch told Bloomberg on Tuesday.
“Gold repeatedly failed to overcome the 100-day moving average in recent days, which was a bearish sign. There is a risk now that so far patient ETF investors jump on the bandwagon and sell their holdings. This would amplify the downward move,” he added.
Bullion is headed for its biggest monthly drop in more than four years after the Federal Reserve pulled forward its forecasts for interest rate hikes.
Gold slipped below $1,800 an ounce this month, with traders now turning their focus on the timing of when policy makers may start dialing back stimulus.
“Market participants are reluctant to build new positions due to gold’s repeated failure to break above the psychologically important $1,800 level, upcoming labour market data and inflation,” Fritsch said in a separate note to Reuters.
Investor holdings of gold-backed exchange-traded funds remained steady this month after rising 1.6% in May, according to data compiled by Bloomberg.
Short Link:
https://www.miningnews.ir/En/News/614792
China’s Zhaojin Mining Industry said on Wednesday that its A$733 million ($477.8 million) offer to buy Australia’s ...
Toronto-listed miner OceanaGold Corp said on Wednesday it will raise 6.08 billion pesos ($106 million) through an ...
Gold’s record-setting rally this year has puzzled market watchers as bullion has roared higher despite headwinds that ...
AbraSilver Resource said on Monday it has received investments from both Kinross Gold and Central Puerto, Argentina’s ...
Gold took a tumble as haven demand waned after geopolitical tensions eased in the Middle East.
The four largest indigenous communities in Chile’s Atacama salt flat suspended dialogue with state-run copper giant ...
A prefeasibility study for Predictive Discovery’s (ASX: PDI) Bankan gold project in Guinea gives it a net present value ...
Representatives from the Peñas Negras Indigenous community, in northwestern Argentina, clashed with heavily armed police ...
Newmont confirmed on Wednesday that two members of its workforce died this week at the Cerro Negro mine located in the ...
No comments have been posted yet ...