Metals Prices Rocked by Strong Dollar, Turkey as Gold Slumps to 17-Month Lows
Published Aug 13, 2018 01:54PM ET
Gold Prices fell below $1,200 on Monday
Investing.com - Metal prices were rocked by Monday as gold fell to a 17-month low, pressured by rising geopolitical uncertainty and a stronger greenback.
Gold futures for August delivery on the Comex division of the New York Mercantile Exchange fell by $19.20, or 1.58%, to $1,199.80 a troy ounce.
A wave selling hit the lira, triggering concerns about an emerging market crises, but investors have continued to shun gold as a safe-haven destination on concerns further increases in U.S. interest rates would boost the dollar, reducing gold demand.
The U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, rose by 0.03% to 96.22. And there is more room for further upside, according to Oppenheimer.
"The key action last week was the US dollar’s index breakout above 95 resistance, in our view. This breakout completed a year-long bottoming formation and confirmed a reversal of dollar index's 2017 downtrend, by our analysis. We see 98 as the dollar index's next likely stopping point," Oppenheimer said in a note to clients.
Gold is sensitive to moves higher in the U.S. dollar. A stronger dollar makes gold more expensive for holders of foreign currency, reducing investor demand for the precious metal.
The impact of the stronger dollar and trade concerns, which threatens to stifle global economic growth, was seen in the wider metals market as zinc and platinum fell sharply.
Copper prices fell 0.53% to $2.73, while zinc prices fell 2.45% at 2,478.00.
Aluminium prices fell 0.79% to 2,076.00, while nickel futures fell 2.08% to 13,525.00.
Silver futures fell 1.99% to $14.99 a troy ounce, while platinum futures lost 3.38% to $801.60.
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Written By: Investing.com
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