Gold down, hampered by strengthening dollar, investor risk appetite
Gold dropped on Thursday morning in Asia, hovering near a one-week low. A recovering dollar and investors’ increased risk appetite both factored in lessening the safe-haven asset’s appeal to investors.
Gold futures dipped 0.20% to $1,799.00 by 1:21 AM ET (5:21 AM GMT) after dropping to its lowest level since July 12 in the last session. The dollar, typically moving inversely to gold, went up on Thursday to just shy of three-and-a-half-month highs.
Shares worldwide also reported gains as investors appear to have gotten over worries about new outbreaks of the coronavirus due to the Delta variant that might cause inflationary pressures.
Investors are now anticipating a European Central Bank (ECB) policy decision, a policy wherein the central bank is generally expected to retain its dovish stance and implement changes in its strategy for the first time. Bank Indonesia is also expected to hand down its policy decision within the day.
Going over to other precious metals, silver edged down 0.1%, while palladium climbed 0.4% and platinum held steady at $1,080.39.