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04 December 2023

Gold extends loss as dollar rises on China move

By Agencies

Gold declined, extending its loss for a third day, after the dollar rose on speculation China will take more steps to curb bank lending to ward off asset bubbles.

Gold for immediate delivery fell as much as 0.2 per cent to $1,096.18 an ounce before trading at $1,097.79 an ounce in Singapore. The metal, which earlier climbed as much as 0.5 per cent, reversed an earlier advance as the dollar rebounded against the six-currency basket. The dollar strengthened and Asian stocks slid for a seventh day after news said several Chinese banks will face an additional increase in their reserve ratios.

“Gold is moving in lock step with the dollar,” said Hwang Il Doo, a senior trader with KEB Futures in Seoul. “The rumour of further tightening in China, coupled with falling stocks, is giving a boost to the dollar and affecting commodities as a whole.”

The metal, which touched an all-time high of $1,226.56 last month, slumped to a one-month low of $1,081.95 an ounce on January 22. Gold for February delivery gained 0.6 per cent on the Comex division of the New York Mercantile Exchange. Gold holdings in the SPDR Gold Trust, the biggest exchange- traded fund backed by bullion, were unchanged at 1,111.92 tonnes as of January 25, according to its website.


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