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PRECIOUS-Gold falls to over two-month low on stronger dollar

Published 09/24/2020, 09:20 AM
Updated 09/24/2020, 09:30 AM
© Reuters.
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Sept 24 (Reuters) - Gold prices hit a more than two-month
trough on Thursday, weighed down by a robust dollar, with
investors looking to U.S. jobless claims data due later in the
day to further gauge the pace of a recovery in the world's
largest economy.

FUNDAMENTALS
* Spot gold XAU= fell 0.3% to $1,858.08 per ounce by 0049
GMT. Prices earlier hit $1,853.32, the lowest level since July
22.
* U.S. gold futures GCv1 were down 0.3% to $1,862.30.
* The dollar index .DXY held firm near a more than
eight-week peak against rival currencies, as signs of an
economic slowdown in Europe and the U.S. renewed concerns about
a second wave of novel coronavirus infections. USD/
* A firmer dollar makes bullion more expensive for holders
of other currencies.
* U.S. business activity cooled in September, with gains at
factories offset by a retreat at services. Investors now await
weekly data, which is expected to show U.S. jobless claims fell
slightly but remained elevated. * Euro zone business growth ground to a halt this month as
the service industry slammed into reverse, knocked by a
resurgence in COVID-19 cases prompting governments to
reintroduce restrictions, a survey showed. * Federal Reserve officials on Wednesday doubled down on
efforts to convince investors they will keep monetary policy
easy for years to allow unemployment to fall, emphasising that
interest rates will stay near zero until inflation gets to 2%
and stays there.
* Holdings in SPDR Gold Trust GLD , the world's largest
gold-backed exchange-traded fund, fell 0.87% to 1,267.14 tonnes
on Wednesday. * Silver XAG= fell 2.8% to $22.23 per ounce, hitting a
more than two-month low earlier in the session.
* Platinum XPT= was steady at $838.32 per ounce and
palladium XPD= eased 0.1% to $2,217.90.

DATA/EVENTS (GMT)
0645 France Business Climate Mfg Sept
0800 Germany Ifo Business Climate New Sept
0800 Germany Ifo Curr Conditions New Sept
0800 Germany Ifo Expectations New Sept
1230 US Initial Jobless Clm Weekly
1400 US New Home Sales-Units Aug

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