Gold hits one-week trough as dollar gains

July 19, 2021

Gold prices slipped to a one-week low on Monday as investors sought comfort in the U.S. dollar amid rising coronavirus cases.

Spot gold fell 0.5% to $1,802.26 per ounce by 1248 GMT. U.S. gold futures slipped 0.7% to $1,802.00.

Making gold more expensive for holders of other currencies, the dollar strengthened 0.3% to a more than three-month high against its rivals.

“The dollar strength is limiting gold’s upside and sort of remains one of the key headwinds,” said Harshal Barot, a senior research consultant for South Asia at Metals Focus.

“There are emerging concerns about the Delta variant and its impact on global economic growth. So, primary safe-haven flows are also going into the dollar and bonds.”

Gold’s losses came despite U.S. 10-year Treasury yields dropping to their lowest since mid-February.

Independent analyst Ross Norman also said gold’s failure to convincingly breach the $1,820 level, and move higher, “had a detrimental impact.”


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