Zimpapers Logo

Gold prices fell yesterday as the dollar held near a multi-month high buoyed by interest from investors seeking cover from sliding stocks and by prospects for higher US interest rates.

Spot gold was down 0,1 percent at $1 201,08 per ounce at 1251 GMT. Prices had slipped to their lowest since October 11 at $1 195,90 in the previous session.

US gold futures were flat at $1 201,4 per ounce.

“The continuing dollar strength is weighing on gold. What people are doing is selling everything to buy the dollar and that includes gold,” said Alasdair Macleod, head of research at GoldMoney.com.

The dollar index, a gauge of its value versus major currencies, was firm near a 16-month high, after retracing slightly earlier in the session as investors took profits prompted by gains in the euro and sterling on growing confidence about a draft Brexit deal.

The British cabinet will meet at 1400 GMT to consider the withdrawal agreement.

Meanwhile, stocks fell on worries about a slowdown in global economic growth.

Gold, usually considered a safe investment during times of political or economic uncertainty, has fallen about 12 percent from a peak in April as investors flocked to the dollar instead, with US-China trade friction unfolding against a background of higher US interest rates. – Reuters.