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.
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