High gold prices ... and new isolation measures that overshadow the dollar's strength
Gold rose within a narrow range today, while fears of a rise in Covid-19 cases across Europe addressed the pressure of the dollar's strength on the precious metal before important words of decision makers at the US Federal Reserve this week.
Gold rose in the spot market 0.1 percent to 1914.28 dollars an ounce by 0431 GMT, after losing 3 percent to 1882.70 dollars an ounce, its lowest level since August 12 yesterday.
In US futures trading, gold gained 0.5 percent to $ 1919.70 today.
Earlier, the rise of the dollar reduced the attractiveness of gold, while the dollar index maintained its gains against competing currencies overnight.
A stronger dollar raises the yellow metal's cost to holders of other currencies.
"Gold is now more sensitive to the dollar than any of the other factors," said Margaret Young of the DailyFix, which covers currencies, commodities and indices.
But gold was supported by concerns about new isolation measures in Europe, and doubts about a speedy economic recovery distanced investors from riskier assets.
As for other precious metals, silver stabilized at $ 24.73 an ounce, while platinum rose 1.2 percent to $ 891.75, and palladium rose 0.9 percent to $ 2293.71 an ounce.
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