Gold rally distorted again, as investors seek haven in ‘gaining’ Dollar

*Gold’s gains cannot seem to stay on track, say analysts

Isola Moses | ConsumerConnect

Having recently posted two straight weekly gains, gold (precious metal), headed for a second straight daily loss as the Dollar’s advance sapped buying interest Tuesday, October 13, 2020.

Investors reportedly turned to the greenback (Dollar) as a haven, after a setback in a COVID-19 vaccine trial and deadlocked talks on the much expected United States (US) economic stimulus.

Agency report indicates that the bullion, which surged 30% through the first eight months of 2020, lost momentum in September as the dollar gained.

The resiliency of the US 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.

As gold falls when the US currency heads for second straight gain, Commerzbank AG analyst Daniel Briesemann in a note Tuesday said: “Gold is having a hard time freeing itself from the $1,900 mark, which appears to be exerting a certain pull on its price.”

Gold for immediate delivery fell 1.7% to $1,890.66 at 1:48 p.m. in New York, after slipping 0.4% on Monday.

It reached record $2,075.47 in early August. Gold futures for December delivery on the Comex fell 1.8% to settle at $1,894.60 an ounce.

Janet Mirasola, Managing Director at Sucden Futures, stated: “The dollar strength pushed gold back down to break technical support at $1,912.”