Gold prices continues its descent amid strengthening Dollar
Gold prices continued its descent earlier on Tuesday in Asia as the Dollar continued to pick up momentum. However, the yellow metal’s losses remained limited amid economic worries due to the COVID-19.
Gold futures lost 0.14%, exchanging hands at $1,931.45 by 12:37 AM ET (0537 GMT) after reaching a high of $1,945.90 on Monday.
Gold’s losses are attributed to a rising U.S. Dollar, which strengthened as investors awaited the European Central Bank’s policy decision on Thursday.
While the U.S. Labor Day holiday limited gold’s losses as well, U.S. President Donald Trump continued to create uncertainty in the marketplace by once again raising the concept of decoupling the U.S. and Chinese economies as a solution to the U.S.’ massive trade deficit with China. However, the idea is yet to be considered.
Gold has seen record gains since the early stages of the COVID-19 pandemic, with prices reaching above the $2,000 mark in August.