Business World

Gold bullion price slides to over one-month low


GOLD prices hit a more than fiveweek low on Monday as the dollar firmed with markets closely watching a US Federal Reserve meeting for clues on when the bank will start tapering its crisisera stimulus measures.

Spot gold fell 0.3% to $1,748.69 per ounce by 0312 GMT. Prices had touched $1,741.86 earlier in the session, their lowest level since Aug. 12.

US gold futures fell 0.1% to $1,749.00.

The dollar index hit a near onemonth high, hurting gold’s appeal for holders of other currencies.

The market is starting to think that a taper announceme­nt could be imminent and that there could be a hawkish surprise in the dot plots, Stephen Innes, managing partner at SPI Asset Management, said.

Bullion is viewed as a hedge against the inflation and currency debasement likely from widespread stimulus. The Fed’s tapering could tackle both those conditions, diminishin­g gold’s appeal.

“It really looks like the markets turned quite bearish on gold, with some critical support levels ($1,780 and $1,750) giving away and I think this does open up for a test of $1,700,” Mr. Innes said.

The Fed is expected to open the door to reducing its monthly bond purchases when it meets on Sept. 21-22, while tying any actual change to US job growth in September and beyond.

The central bank is also likely to release fresh economic projection­s and a new read on officials’ interest rate expectatio­ns.

Higher interest rates raise the opportunit­y cost of holding noninteres­t bearing gold.

Elsewhere, silver fell 1.2% to $22.13 per ounce, after earlier hitting its lowest level since November 2020 at $22.01.

Platinum slumped to a tenmonth trough of $907.50 and was last down 2.8% at $914.54.

Palladium slipped 3.5% to $1,945.17. —

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