Gold down on stronger U.S. dollar

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Gold
Source: yungghana.com

Gold futures on the COMEX division of the New York Mercantile Exchange fell on Wednesday as the U.S. dollar strengthened.

The most active gold contract for December delivery fell 42.8 U.S. dollars, or 2.13 percent, to close at 1,970.3 dollars per ounce.

The U.S. Dollar Index rose 0.5 percent by the close of gold trading on Wednesday, putting extensive pressure on the precious metal.

Stock market indexes around the globe were mostly positive on Wednesday, adding additional pressure to the precious metal.

Investors spent the session eagerly waiting for the release of the minutes from the Federal Open Market Committee’s meeting in July. Analysts believe the Fed is likely to have signaled to Congress during this meeting that their powers to stimulate the economy and employment are limited and that the legislative branch must take action.

The overall outlook for gold remains bullish as investors are concerned over the inflationary measures taken by central banks and governments around the world in reaction to the economic impacts of the COVID-19 outbreak.

Additional concerns remain over the potential for a second wave of the pandemic beginning in the fall.

Silver for September delivery fell 73.5 cents, or 2.62 percent, to close at 27.34 dollars per ounce. Platinum for October delivery fell 19.1 dollars, or 1.96 percent, to close at 956.3 dollars per ounce.

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