Gold prices drifted lower on Tuesday, extending losses to a fourth successive session, as the dollar stayed firm and risk appetite remained intact after Germany announced a stimulus plan to support its growth.
The European Central Bank, which is scheduled to state its monetary policy on Thursday, is widely expected to introduce a stimulus package that may include a rate cut to boost growth amid the ongoing U.S.-Sino trade war.
Next week, the Federal Reserve is scheduled to announce its policy. The central bank Chairman Jerome Powell’s recent comments that the bank will continue to act “as appropriate” to sustain the U.S. economic expansion, has raised expectations of an interest rate cut.
The dollar index rose to 98.46 before paring some gains and easing to 98.38, still up with a modest gain of about 0.1%.
Gold futures for December ended down $11.90, or about 0.8%, at $1,499.20 an ounce, the lowest close in about five weeks.
On Monday, gold futures for December ended down $4.40, or about 0.3%, at $1,511.10 an ounce, after falling 0.7% and 2.2% in the previous two sessions.
Silver futures for December ended up $0.019, at $18.186 an ounce, while Copper futures for December settled at $2.6280 per pound, up $0.0005 for the session.
Slightly easing worries about U.S.-China trade dispute on the back of recent reports about resumption of ministerial-level trade talks in early October have also contributed to the increased risk appetite in markets.
The material has been provided by InstaForex Company – www.instaforex.com