Gold price tumbles on firm dollar

Gold price tumbles on firm dollar

Highlights

  • Gold prices tumbled on Tuesday.
  • Prices surpassed the mark of US$1,800 per ounce on Monday, the highest since August 2021.
  • Investors have shifted their interest in equities, dimming the appeal of gold.

Gold prices tumbled nearly 1.5% on Tuesday snapping the gains of five sessions on the back of firm US dollar. December delivery gold futures surpassed the mark of US$1,800 per troy ounce on Monday however the futures are currently trading at US$1,793.30 per ounce, down 0.01% as of 27 October 2021 at 12:33 PM AEDT.

Stronger earnings in equities dimming gold’s appeal

The stronger earnings in equities are taking off the appeal of gold. Tech-related companies drove the benchmark S&P 500 index to a record high level during the intraday trading session, taking away the investments on safe haven.

The prices of gold were additionally weighted due to a strong US dollar that makes bullion more expensive for other currency holders.

Gold prices have rallied nearly 2.5% in the past five sessions on the back of inflation concerns and uncertainty over the measures taken by central banks to combat rising prices.

The prices of gold crossed the US$1,800 mark on Monday followed by the most recent comment of U.S. Fed Chair Jerome Powell, reiterating that high inflation would likely decrease in the next year.

Falling gold prices | Source: © Auris | Megapixl.com

Investors are now focusing on the meetings of the European Central Bank and Bank of Japan, scheduled on Thursday while the follow-up US Fed meeting is planned on 2-3 November.

Bottom Line

Gold prices tumbled on Tuesday after crossing the US$1,800 mark Monday as investors shifted their interest in equities because of higher earnings.

This content was originally published here.

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