Gold has dipped below $1,800 an ounce for the first time in a week amid a broader pullback in commodity prices as the U.S. dollar advanced and traders grappled with a decidedly “risk off” mood in markets.
expiring in December were down $26.50, or 1.5%, to $1,789 an ounce on Comex, according to FactSet data.
expiring in September lost 48 cents, or 2.3%, to $20.36 per ounce.
futures expiring in September were down $47, or 2.1%, to $2,172 per ounce, while platinum futures expiring in October shed $28, or 3%, to $931 per ounce.
dropped 11 cents, or 3.1%, to $3.555 per pound, on track for its biggest daily drop in a month.
What analysts are saying
With equity futures pulling back and Treasury yields falling, markets appeared to be shifting back into “risk off” mode early Monday following a torrid four-week rally for the S&P 500. Analysts blamed the sour mood on weak economic data out of China, along with surprise interest-rate cuts from the country’s central bank.
Meanwhile, Marc Chandler, chief market strategist at Bannockburn Global Forex, blamed the pullback in gold on the renewed strength in the U.S. dollar. The ICE U.S. Dollar Index, a gauge of the greenback’s strength against a basket of its main rivals, was up 0.6% on Monday after falling to its weakest level in a month late last week.
Craig Erlam, senior market analyst at OANDA, said in a note to clients that it’s too early to tell whether gold’s pullback will continue, or if this is just a slight hiccup on the road higher. But one thing is clear: The $1,800 price level is shaping up to become a key psychological barrier.
In other markets news, bitcoin
also tumbled on Monday, trading just north of $24,000, after briefly breaking above $25,000 per coin for the first time since stocks and crypto bottomed in June.
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