Gold becomes cheaper due to dollar growth amid doubts about restarting US economy
US, WASHINGTON (ORDO NEWS) — The price of gold fell to more than a weekly low on Monday, as the dollar strengthened amid doubts about the US plans to reopen the world’s largest economy, while the coronavirus pandemic does not show signs of weakening.
The spot price of gold fell 0.37% to $ 1,677.89 per troy ounce by 12:00 UTC, earlier reaching the lowest level since April 9. On Friday, the price fell by about 2% amid hopes that the US economy could soon reopen.
“The decline in optimism (regarding growth prospects) is a factor that should usually support gold prices, but now we do not see it,” said Michael McCarthy of CMC Markets.
“This may be due to the strengthening of the US dollar, which is not particularly advanced, but growing.”
The dollar rose slightly on Monday amid growing fears of a global slowdown.
Self-isolation protests took place on Sunday in several U.S. states, while governors challenged U.S. President Donald Trump‘s claims that they had enough tests for the new coronavirus and that they should quickly restart their economies.
Palladium rose 1.98% to $ 2.199.83 an ounce, platinum rose 0.59% to $ 779.81, while silver stabilized at $ 15.18.
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