Gold Fell As The Dollar Rose

Gold Fell As the Dollar Rose

Gold fell to its lowest point in almost two weeks on Monday as the dollar rose, while doubts rose that the speeches from U.S. Federal Reserve policymakers this week this would include additional stimulus measures. The dollar index rose 0.4% against its rivals, making gold more expensive for holders of other currencies.

The Dallas Fed Reserve President Rob Kaplan, Chicago Fed President Charles Evans, New York Fed President John Williams, Atlanta Fed President Raphael Bostic and Fed Governor Lael Brainard are all scheduled to speak Monday. Chairman Jerome Powell is also set to testify before Congress on Tuesday and Wednesday and is likely to urge lawmakers to boost stimulus measures, which would be bullish for gold. The Fed indicated last week that it would keep interest rates near zero for some time. Also supporting gold prices is the worsening coronavirus pandemic as the global death rate edged close to 1 million and the U.S. rate neared 200,000.

Gold futures rose 0.7% last week to settle at $1,962.10 an ounce on Comex. The December contract increased 0.6% Friday. Gold is still up more than $400 — or 29% — so far this year as investors have flocked to gold because of uncertainty from the coronavirus pandemic and the economy. Currently, the December contract is $1,918.00 an ounce, while the DG spot price is $1,911.30.

Speculators boosted their net long positions in Comex gold by 10,622 contracts to 165,251 in the week ended Sept. 15, according to the Commitments of Traders report published Friday by the U.S. Commodities Futures Trading Commission.

Gold has resistance at $1,975 an ounce and support at $1,935, Jeffrey Halley, a senior market analyst at OANDA, said in a note, according to Reuters.

Gold miners are starting to feel the heat from investors who want them to pay more attention to environmental, social and governance topics, Bloomberg reported. A group of gold investors including firms backed by John Paulson and Naguib Sawiris are pushing miners to more closely align the interests of their managers, boards and shareholders.

The Gold Forum Americas conference — a key industry event in Denver — is being held virtually this week.

The virus known as COVID-19 has killed almost 961,000 people worldwide, sickened 31 million and decimated global economic growth. About 22% of the cases — and 21% of the deaths — are in the U.S. The country has 6.81 million cases, more than any other nation. The economic impact of the coronavirus pandemic and associated lockdowns has cost millions of Americans their jobs. The U.S. faces a long road back to maximum employment, Powell said last week.

Silver futures gained 1% last week to settle at $27.13 an ounce on Comex after the December contract increased 0.1% Friday. The most active contract is down 5.1% this month after gaining 18% in August and soaring 30% in July. Currently, the December contract is $25.785 an ounce, while the DG spot price is $25.51.

Spot palladium increased 2% last week to $2,382.10 an ounce after advancing 2.1% Friday. Spot platinum rallied 0.2% last week to $937.40 an ounce after gaining 0.2% Friday. The DG spot price for platinum is currently $900.10 an ounce, while palladium is $2,327.30.


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