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Gold Futures Edge Lower, Settle At 2-month Low

Gold Futures Edge Lower, Settle At 2-month Low

Gold prices edged lower on Tuesday, posting losses for a second straight session, as the dollar continued to exhibit strength amid worries about a continued surge in coronavirus cases.

With some countries in Europe, including the U.K. and France announcing fresh lockdown measures to curb the spread of Covid-19, there is growing uncertainty about the pace of economic recovery.

The continued impasse over a new coronavirus relief package in the U.S. too weigh on investor sentiment.

Investors were also digesting speeches from Federal Reserve Chairman Jerome Powell and U.S. Treasury Secretary Steven Mnuchin today.

The dollar index started off on a weak note this morning, but gained in strength as the session progressed to hit a high of 94.08. It was last seen hovering around 93.95, up more than 0.3% from previous close.

Gold futures for December ended down $3.00 or about 0.2% at $1,907.60 an ounce, their lowest close in about two months.

Silver futures for December closed higher by $0.136 at $24.523 an ounce, while Copper futures for December settled at $3.0610 per pound, gaining $0.0290 for the session.

Speaking before the House Financial Services Committee this morning, Fed Chair Powell said the path forward “will depend on keeping the virus under control, and on policy actions taken at all levels of government.”

He said both employment and overall economic activity remain well below their pre-pandemic levels and the path ahead continues to remain highly uncertain.

Steven Mnuchin said the White House continues to seek an agreement with both parties in Congress on another fiscal relief package.

Existing home sales in the U.S. climbed to their highest level in nearly fourteen years in the month of August, according to a report released by the National Association of Realtors on Tuesday.

NAR said existing home sales jumped 2.4% to an annual rate of 6.000 million in August after skyrocketing by 24.7% to a rate of 5.860 million in July. The continued increase in sales matched economist estimates.

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