“Dollar dominance” pushes gold prices to the lowest level in a week

A stronger dollar makes gold more expensive for holders of other currencies.

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Yesterday, gold prices fell to their lowest levels in almost a week, as investors preferred the dollar for a haven, amid fears that the spread of the mutated “delta” strain of the Corona virus, may dampen the global economic recovery.

And gold fell in spot transactions 0.4% to $ 1804.6 an ounce, after falling to its lowest level since July 13 at $ 1801.46.

US gold futures fell 0.6% to $1,804.1.

“The strength of the dollar is limiting the upside for gold, and it is still somewhat of a major headwind,” said Harshall Parrott, senior advisor for South Asia research at Metals Focus, adding that “there are concerns arising from the (delta) strain and its impact on global economic growth. .

So, the main safe haven flows are also going to the dollar and bonds.”

The dollar rose 0.2% to its highest level in more than three months against other major currencies, making gold more expensive for holders of other currencies.

Many countries, especially in Asia, are struggling to rein in the highly contagious “delta” strain of the coronavirus and have been forced to take lockdown measures.

As for other precious metals, silver fell 1.1% to $ 25.37 an ounce, palladium rose 0.3% to $ 2638.44, and platinum fell 0.8% to $ 1093.4.

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