Gold Retreating Due to Strength of Dollar, Eyes on Central Banks

Gold fell on Tuesday, September 8th, due to the rise of the dollar, but the losses were limited by doubts about economic recovery, while investors awaited the strategies of central banks’ policies in North America and Europe.

Gold spot fell 0.2% to 1925.38 dollars an ounce by 05:10 GMT. And gold fell in futures trading in the United States 0.1% to 1931.70 dollars. The dollar increased against its competitors, which raises the cost of the yellow metal for holders of other currencies.

This limited the losses, data showed Japan’s economy contracted by more than initial estimates in Q2, while capital spending was hit by the pandemic.

Governments and central banks have flooded the markets with unprecedented stimulus measures to reduce the economic damage caused by the pandemic, which raised gold to high levels thanks to its role in hedging in the face of inflation and the depreciation of the currency.

Regarding other precious metals, silver fell 0.9% to $ 26.76 an ounce, platinum fell 0.1% to $ 906.76, while palladium rose 0.7% to $ 2310.41.