Commodities

Gold falls to 2-week low on slowing safe-haven demand

2020-01-14 13:10:38 GMT (Economies.com)

Gold prices fell during the European session on Tuesday, to deepen losses for the third straight day to a 2-week low, on slow safe-haven demand, and a rise in the US dollar against a basket of major currencies.

 

Gold prices fell by 0.8% to $1,535.88 (the lowest since Jan. 3), after opening at $1,548.18, and hit a day high of $1,548.87.

 

The yellow metal closed lower by 0.9% yesterday, to post its third daily loss in the four days, on improved investor risk-appetite.

 

Gold prices are facing pressure from slow safe-haven demand, and improved risk-appetite, as risks that pushed gold prices 7-year highs receded.

 

These risks were the heightened geopolitical tensions in the Middle East between the US and Iran after the killing of the Iranian General Qassem Soleimani in a US airstrike.

 

Market sentiment also got a boost as the US and China are going to sign the phase-one trade deal on Wednesday in Washington, DC.

 

The dollar index rose today by 0.1%, to extend its gains for the second straight day, reflecting a strong performance against a basket of major currencies.

 

The greenback's rally comes as demand surged on higher-yielding currencies, ahead of key US data releases on inflation levels for December.

 

Gold holdings at the SPDR Gold Trust, remained unchanged yesterday, with a total of 874.52 metric tonnes (lowest since Aug. 27).

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