Gold slides 3% on strong dollar, stimulus concerns; silver tumbles

Avatar photo

Exclusive Capital Research Team

See all articles

Commodity Update, Thursday, 24th of September, 2020

Gold slumped over 3% on Monday, sliding to its lowest level in more than a month, as a broader market sell-off driven by uncertainty over more U.S. fiscal stimulus pressured the precious complex along with a stronger dollar, with silver plunging 8.3% to $24.53, its lowest level in over a month.

Gold expected to be trading higher on safe-haven demand has been affected by market participants selling off assets across the board

Wall Street’s main indexes hit their lowest levels in nearly seven weeks on Monday, while the dollar index rose 0.8% against its rivals, its highest daily percentage gain since March 19.

With little chance now of Congress agreeing on any stimulus package before January being asymptotically close to zero has also resulted in a strengthening dollar, adding more pressure to the yellow metal

A move back and close above $1,900 is needed to grant a short-term reprieve but looks like price may have to test the lows of the correction, $1,863 at some stage soon.

Important Information: This communication is marketing material. The views and opinions contained herein are those of the author(s) on this page, and may not necessarily represent views expressed or reflected in other Exclusive Capital communications, strategies or funds. This material is intended to be for information purposes only and is not intended as promotional material in any respect. The material is not intended as an offer or solicitation for the purchase or sale of any financial instrument.

Read our detailed Marketing Communication Disclaimer

SHARE

CONNECT WITH OUR TEAM

Explore the ways in which we can help you achieve your investment goals.

OUR PARTNERS
bdo

EXTERNAL AUDITOR

ey

LEGAL ADVISOR

lgt

CUSTODIAN BANK

efg

APPROVED PARTNER

Raiffeisen

DEPOSITORY BANK

Prime Fund

GROUP MEMBER