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Gold fell by more than 1% on Monday to its lowest level of six and a half months, while platinum hit its lowest level in nearly 10 years due to the strengthening of the dollar and the current trade dispute between the United States and the European Union has put pressure on precious metals.
Fears over the US-China trade war weakened the yuan, the rupee of India and the Japanese yen against the greenback. The appreciation of the dollar makes it more expensive for gold, which works in the currency, for holders of other currencies.
The dollar received a new boost of better than expected data in the US manufacturing sector. Its strength has allowed the spot gold to dive more than 8% from its April high of $ 1,365.23.
Spot gold fell 0.8% to $ 1,242.01 an ounce at 6:20 pm GMT. Gold in the United States for delivery in August fell $ 12.80, or 1% to $ 1,241.70 an ounce
Meanwhile, platinum lost 4% to 814 $, its worst daily decline in more. two and a half years after touching its lowest level since December 2008 at $ 804. Palladium fell 1.1% to $ 942.5,
while silver fell 1.4% to $ 15.85 an ounce after marking $ 15.73.
Washington that the application of tariffs on imports of automobiles and parts would harm the US auto industry and could result in retaliation against US property valued at $ 294 billion.
"We see that the threat of tariffs will affect demand," said John Caruso, market strategist at RJO Futures
. Car sales are expected to plummet, said Walter Pehowich of Dillon Gage. "Psychologically, it discourages people who want to buy platinum and palladium," he added
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