Gold fallas as dollar retains upper hand
Thursday, 6 October 2022
Gold fell 1.0 per cent on Wednesday as the dollar regained traction and made bullion less appealing for other currency holders, while markets looked ahead to US jobs numbers for clarity on the Federal Reserve's rate hike path, reports Reuters.
Spot gold was down 0.7 per cent at $1,714.08 per ounce by 0907 GMT, after hitting a three-week peak at $1,729.39 on Tuesday. U.S. gold futures slipped 0.4 per cent to $1,723.60.
The dollar index jumped 0.5 per cent against its rivals, after shedding 1.3 per cent overnight to mark its biggest drop since March 2020. Benchmark US 10-year Treasury yields also rose.
"It's been a big start to the week in which gold has rallied very strongly on the back on weaker US data, and then softer yields and the dollar," said Craig Erlam, senior market analyst at OANDA.