Citing information from CNBC (New York) on monday 2 october 2017 Gold is now nearing its lowest level at seven weeks in the american market rising US Treasury yields and strengthening against the US dollar had an impact on precious metals.
gold dropped on the spot 0,37% or into a range US$ 1,274.42 / troi ons. for delivery from Comex-AS now closed. Weakened on 0,70% to US$ 1.275,80/troi ons. At the beginning of trade, gold had time to reach on US$ 1.273,70, near the lowest level printed on August 16 last at US$ 1.273,20.
In Asian markets, Tuesday (3/10) morning, gold futures prices continued to weaken to the level of US $ 1,273.90 per troi oz.
Expectations that the Federal Reserve will drive up US interest rates and solid economic data have hoisted on bond yields and the US dollar. The spot dollar index closed at 93.56 from the previous session of 93.07.
The dollar’s strength erodes gold, as commodities traded in dollars become more expensive for buyers holding other currencies.
“The recent gold-selling action was largely due to the long-awaited publication of Donald Trump’s government tax reform proposal,” said Jonathan Butler, a Mitsubishi analyst, as quoted by CNBC.
“The dollar has surged to six-week highs, Treasury yields soared to a three-month high as investors sought riskier assets and US stocks hit new highs on Friday,” Butler added.
The pressure that hit the euro is also increasingly profitable dollar. As is known, the euro currency weakened due to chaos that occurred in the vote for the referendum Catalonia.