Gold’s rally can’t seem to stay on track.
The metal, which has posted two straight weekly gains, headed for a second straight daily loss on Tuesday as the dollar’s advance sapped buying interest. Investors turned to the greenback as a haven after a setback in a Covid-19 vaccine trial and deadlocked talks on U.S. economic stimulus.
Bullion, which surged 30 per cent through the first eight months of 2020, lost momentum in September as the dollar gained. The resiliency of the U.S. currency has been on display again this week, frustrating expectations that election risks and Covid-hit economies would sustain demand for the metal as a haven.
“Gold is having a hard time freeing itself from the US$1,900 mark, which appears to be exerting a certain pull on its price,” Commerzbank AG analyst Daniel Briesemann said in a note Tuesday.
Gold for immediate delivery fell 1.7 per cent to US$1,890.66 at 1:48 p.m. in New York, after slipping 0.4 per cent on Monday. It reached record US$2,075.47 in early August. Gold futures for December delivery on the Comex fell 1.8 per cent to settle at US$1,894.60 an ounce.
“The dollar strength pushed gold back down to break technical support at US$1,912,” said Janet Mirasola, managing director at Sucden Futures.
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