Gold price falls as dollar strengthens again

Gold was under pressure again from a stronger US dollar on the morning of Tuesday December 20 in London.

The spot gold price was recently quoted at $1,132.70/1,133.15 per oz, down $5.10 on the previous close. Trade has ranged from $1,131.90 to $1,140.05 so far.

Deadly attacks in Germany and Turkey has so far failed to spur safe-haven demand, market participants noted.

A truck ploughed into a crowd in Berlin, killing twelve and injuring 48, while Russia’s ambassador to Turkey was killed in a gun attack in the Turkish capital of Ankara on Monday, newswires reported.

“Gold prices are consolidating but the downward trend dominates and it is too early to say whether support is in place. Indeed, with the dollar index looking strong again, gold prices may struggle on the upside,” Metal Bulletin analyst William Adams said.

The dollar is looking stronger again, with the dollar index at 103.41; the peak on December 15 was 103.56.

ETF outflows of 300,000 oz overnight and dollar strength continue to create headwinds for gold but underlying support is broadly around $1,130-1,13,  providing a platform for the recent grind higher, MKS noted.

Gold ETFs recorded their 27th consecutive trading day of outflows yesterday at 9.4 tonnes, which equalled the record losing streak in the spring of 2013. Since the outflows began on November 10, holdings have fallen 214 tonnes, which is actually greater than the total outflows in the spring of 2013, Commerzbank noted.

In the other precious metals, silver followed gold lower and was recently down 10 cents at $15.860/15.880 per oz. The spot platinum price was quoted at $912/917 per oz, a drop of $2, and palladium fell $5 to $670/675 per oz.

(Editing by Wei Jun Lau)

 

 

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