Gold is heading towards recording its biggest monthly decline in nearly four years, as the strong dollar pushes it lower today, Wednesday, with the return of caution to the markets after the first presidential debate in the United States.
Spot gold fell 0.6% to $ 1885.81 an ounce by 06:18 GMT, down 4.3% since the beginning of this month, in what will be the worst monthly performance since November 2016.
US gold futures fell 0.5% to $ 1893.30.
The dollar index rose 0.1% and is on track for its biggest monthly gain since July 2019, which increases the cost of gold for holders of other currencies.
“The dollar’s gains following the debate thwarted gold’s latest attempt to reach the psychologically important level of $ 1900,” said Han Tan, market analyst at FXTM, adding that the currency is the preferred safe haven asset for investors now.
But he said, “If investors’ concern grows more about the possibility of a delay in the election result, the prolonged political uncertainty may provide another support for the metal over the coming weeks.”
Gold also lost some of its luster due to positive Chinese data on the activities of the manufacturing and services sectors, while market participants tracked progress in a new financial support bill related to Corona in the United States.
As for other precious metals, silver fell 1.7% to $ 23.76 an ounce, platinum fell 1.9% to $ 867.72, and palladium rose 0.5% to $ 2319.05.
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