Gold Edges Down Despite Weak Dollar COMMODITIES: Gold Edges Down Despite Weak Dollar as Hopes for New Record Price Fade
09:14 AM EDT, 08/31/2020 (MT Newswires) -- Gold traded lower early on Monday despite a drop in the U.S. dollar to 27-month lows.
Gold for December delivery was last seen down US$4.40 to US$1,970.50 per ounce in Comex electronic trade.
The drop came even as the U.S. dollar weakened to 27-month lows after the Federal Reserve last week committed to a prolonged period of low interest rates even if inflation rises above its 2% target when the economy recovers from Covid-19.
The ICE dollar index was last seen down 0.14 to 92.23 points after earlier touching 92.15.
The price of the metal has stagnated in recent weeks after touching a record high earlier this month, showing that a push to a new record is unlikely to be set in the near term.
"The gold price upswing now appears to be running out of steam," Commerzbank analyst Carsten Fritsch said in a note." .. A further attempt to regain or indeed rise above the $2,000 mark is likely to be no easy undertaking, as there is insufficient investor interest at present."
(Well investor interest can change when reality sets in)