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Gold Futures End Sharply Lower As Dollar Rises

Gold Futures End Sharply Lower As Dollar Rises

Gold prices declined sharply on Wednesday as the dollar gained against major currencies and equities recovered after a weak start.

The slide in gold prices was so steep that gold futures posted their biggest single-session loss in nearly three weeks.

Stocks gained in strength after a sluggish start, despite news about impeachment inquiry into U.S. President Donald Trump on allegation that he breached his constitutional responsibilities by calling upon a foreign power to intervene in the upcoming election.

Data showing a bigger than expected jump in new home sales in the month of August lifted sentiment.

The dollar rose on easing prospects of aggressive rate cuts by the Federal Reserve.

The dollar index rose to 99.05, gaining more than 0.7%.

Gold futures for December ended down $27.90, or about 1.8%, at $1,512.30 an ounce.

On Tuesday, gold futures for December ended up $8.70, or about 0.6%, at $1,540.20 an ounce, the highest settlement in about three weeks.

Silver futures for December ended down $0.555, at $18.073 an ounce, while Copper futures for December settled at $2.6120 per pound, gaining $0.0055 for the session.

House Speaker Nancy Pelosi, D-Calif., announced that the Democrat-controlled House is moving forward with an official impeachment inquiry of President Donald Trump.

Pelosi said she is directing six House committees to proceed with their investigations under the umbrella of the impeachment inquiry, saying Trump “must be held accountable” and “no one is above the law.”

Trump faces allegations he threatened to withhold military aid from Ukraine unless Ukrainian President Volodymyr Zelensky conducted an investigation of former Vice President Joe Biden, the frontrunner for the Democratic presidential nomination.

A transcript released by the White House confirms that Trump discussed a possible investigation of Biden in a call with Zelensky, although he does not directly link the issue to U.S. aid.

On the economic front, data released by the Commerce Department showed U.S. new home sales rebounded strongly in the month of August following a sharp pullback in the previous month.

The data said new home sales surged up by 7.1% to an annual rate of 713,000 in August after plunging by 8.6% to a revised rate of 666,000 in July.

Economists had expected new home sales to jump by 3.9% to a rate of 660,000 from the 635,000 originally reported for the previous month.

The material has been provided by InstaForex Company – www.instaforex.com