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18 July 2024

Gold retreats as dollar begins to strengthen

By Agencies
Gold declined for a third day to a one-month low as a strengthening dollar reduced the precious metal’s appeal as an alternative investment. Platinum also fell.

Bullion for immediate delivery fell as much as 0.6 per cent to $815.80 an ounce, the lowest since December 12, and traded at $819.70 in Singapore. Gold for February delivery was 0.3 per cent lower at $818.80 in after-hours electronic trading on the Comex division of the New York Mercantile Exchange.

“It is really a dollar play right now. The market has been trading in a tight $820-$880 range in the past month as the dollar continues to strengthen. Physical buying is less than people expected and definitely less than this time last year. At least until the Chinese New Year, gold will trade in the $780 to $850 range,” said Wallace Ng, precious metals trader at Fortis Bank in Asia Pacific in Hong Kong.

Platinum for immediate delivery declined as much as 3.7 per cent to $923 an ounce, extending its loses as a slowdown in auto sales trimmed demand for the metal.

China vehicle sales may climb five per cent this year, the slowest pace since 1998, as a cooling economy and rising job insecurity damp demand, the China Association of Automobile Manufacturers said.