Gold Edges Down Despite Weaker Stocks and Dollar COMMODITIES: Gold Edges Down Despite Weaker Stocks and Dollar
09:18 AM EDT, 07/14/2020 (MT Newswires) -- Gold traded lower early on Tuesday despite a lower dollar and stock markets that are trending lower on renewed lockdown measures in California and elsewhere.
Gold for August delivery was last seen down US$5.30 to US$1,808.80 per ounce in Comex electronic trade.
The drop comes even as stock markets in Asia and Europe weaken as new lockdown measures are introduced in California and India to cope with surging Covid-19 infections. The United States on Monday reported its second-highest number of new cases, with most states reporting an increase.
"Gold dipped below the $1,800 per troy ounce mark overnight. Any more pronounced price slide was precluded by the increased risk aversion amid falling stock markets and renewed lockdown measures in response to rising numbers of new corona cases in some US states," Commerzbank analyst Carsten Fritsch said in a release.
The U.S. dollar weakened, making gold more affordable for international buyers. The ICE dollar index was last seen down 0.03 to 96.44 points.
Expect volatility & Pull back- Cheers to the patient investors