Gold Drops to Month Low Despite Dollar Weakness COMMODITIES: Gold Drops to Month Low Despite Dollar Weakness
02:10 PM EDT, 08/25/2020 (MT Newswires) -- Gold weakened early on Tuesday despite a lower dollar and ahead of speech by Federal Reserve Chair Jerome Powell on improving trade relations with China and positive economic news.
Gold for December delivery closed down US$16.10 to US$1,923.10 per ounce in Comex trade, the lowest close since July 23.
The drop came as U.S. and Chinese officials held friendly talks on the progress of meeting the goals set out in their phase one trade agreements, while U.S. new home sales rose by the most since 2006.
Powell's Tuesday speech is likely to update the market on the central bank's efforts to spur the economic recovery from the pandemic.
The U.S. dollar weakened, making the metal more affordable for international investors. The ICE dollar index was last seen down 0.18 to 93.12 points.