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Gold Futures Plunge Sharply, Settle At 2-month Low

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Gold Futures Plunge Sharply, Settle At 2-month Low

Gold prices declined sharply as the dollar strengthened and equities edged higher after top officials in the Trump administration dismissed reports about U.S. planning to delist Chinese companies from U.S. stock exchanges.

The dollar index advanced to 99.46 and stayed steady around that level. It was last seen trading at 99.42, up 0.31% from previous close.

Gold futures for December ended down $33.50, or about 2.2%, at $1,472.90 an ounce, the lowest settlement in almost two months.

On Friday, gold futures for December ended down $8.80, or about 0.6%, at $1,506.40 an ounce.

Gold futures lost about 3.7% in the month of September.

Silver futures for December ended down $0.654, at $16.998 an ounce, while Copper futures for December settled at $2.5785 per pound, down $0.0190 from previous close.

In U.S. economic news, MNI Indicators released a report showing Chicago-area business activity unexpectedly returned to contraction in the month of September.

MNI Indicators said its Chicago business barometer slumped to 47.1 in September after rebounding to 50.4 in August. A reading below 50 indicates a contraction in Chicago-area business activity.

The index indicated a contraction for the third time in four months, while economists had expected a much more modest decrease to a reading of 50.2.

MNI Indicators said its reading on prices at the factory gate rose 4.1 points to 57.7 in third quarter, with anecdotal evidence pointing to tariffs affecting prices and business activity.

In U.S.-China trade related news, Treasury Department spokeswoman Monica Crowley denied reports the Trump administration is considering delisting Chinese companies from U.S. stock exchanges.

“The administration is not contemplating blocking Chinese companies from listing shares on U.S. stock exchanges at this time. We welcome investment in the United States,” she said in a statement.

Crowley’s statement comes on the heels of reports suggesting the administration is contemplating ways to curb U.S. investments in China.

Meanwhile, White House trade adviser Peter Navarro attacked the media reports in an interview with CNBC on Monday, claiming “over half” of a Bloomberg report about potential restrictions was “highly inaccurate or simply flat-out false.”

“This story was just so full of inaccuracies and in terms of the truth of the matter, what the Treasury said I think was accurate,” Navarro said.

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