Gold Tumbles 5% as Dollar Surge Wrecks Commodities By

By Barani Krishnan – Gold prices tumbled almost 5% to head back to the mid-$1,700 levels last seen in April as a surging dollar wrecked the prices of commodities priced in the greenback.

on New York’s Comex was down $89, or 4.8%, at $1,772.35 per ounce by 11:45 AM ET (15:45 GMT). The session bottom was $1,768, a low not seen since April 30.

The gold, reflective of real-time trades in bullion, was down $34.48, or 1.9%, at $1,777.17, touching a six-week low of $1,767.34 earlier.

Traders and fund managers sometimes decide on the direction for gold by looking at the spot price — which reflects bullion for prompt delivery — instead of futures.

Commodities from gold to oil tumbled after the rose toward the 92 level, rallying for a third day in row, with Thursday’s run-up fired by expectations that the Federal Reserve will raise interest rates at least twice by end of 2023 to 0.6% from current levels of zero to 0.25%.

The Fed also signaled at the end of its monthly policy meeting on Wednesday that it was looking out for data on when to start tapering its monthly asset purchase of $120 billion which the central bank has been doing since the outbreak of the coronavirus pandemic a year ago.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Most Related Links :
Business News Governmental News Finance News

Source link

Back to top button