Gold is Touching its Lowest Level in 6 Weeks Under Strong Dollar Pressure

Gold prices touched on Wednesday, their lowest level in 6 weeks with the rise of the dollar in light of the decline in sentiment in Europe due to the Coronavirus crisis, while investors grew concerned about more stimulus from the US Federal Reserve.

Gold spot lost 1% to 1880.46 dollars an ounce by 06:41 GMT. Earlier in the session, gold hit its lowest level since Aug 12 at $ 1873.70. In futures trading in the US, gold lost 1.5% to $ 1879.10 an ounce.

The dollar index reached an eight-week high, thanks to optimistic US home sales data in the United States and concerns about the second wave of Coronavirus infections in Europe. A strong dollar raises the cost of buying the yellow metal for holders of other currencies.

As for the other precious metals, silver fell 4.8% to $ 23.25 an ounce, and earlier in the session it had recorded its lowest level in nearly two months at $ 23.04.

Platinum lost 1% to $ 858.47, and palladium fell 0.1% to $ 2217.75.