{"id":1205217,"date":"2020-09-02T11:53:29","date_gmt":"2020-09-02T16:53:29","guid":{"rendered":"https:\/\/www.mining.com\/?p=1034483"},"modified":"2020-09-02T11:53:29","modified_gmt":"2020-09-02T16:53:29","slug":"gold-price-falls-on-economic-recovery-hopes","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1205217","title":{"rendered":"Gold price falls on economic recovery hopes"},"content":{"rendered":"

Gold prices dropped further<\/a> on Wednesday as the US dollar strengthened, while a strong rebound in the nation’s manufacturing sector fuelled hopes of a recovery in the coronavirus-hit economy.<\/p>\n

Spot gold fell 1.5% to $1,940.09 per ounce by 12:10 p.m. EDT despite hitting an intraday high of $1,973.25 earlier in the session. US gold futures also declined 1.5% to $1,948.00 per ounce on the Comex.<\/p>\n

Meanwhile, the dollar was up nearly 0.5%, moving farther away from its two-year low, after Euro zone inflation turned unexpectedly negative last month.<\/p>\n

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Bullion prices have surged 28% so far this year after the covid-19 pandemic upended economies<\/p>\n<\/blockquote>\n<\/figure>\n

\u201cThe dollar index is rallying and the euro currency is selling off because the inflation data was negative in Europe,\u201d Phillip Streible, chief market strategist at Blue Line Futures in Chicago, told Reuters<\/a><\/em>.<\/p>\n

On Tuesday, US manufacturing data showed activity accelerated to a near two-year<\/a> high during the month of August, increasing optimism about an immanent recovery of the economy.<\/p>\n

\u201cAs far as the economy is concerned, you are going to get this small bounces in economic data but you are not going to get any significant change in the economy what so ever, not for a long time,\u201d Streible, however, warned.<\/p>\n

Bullion prices have surged 28% so far this year after the covid-19 pandemic upended economies, forcing global central banks to provide massive stimulus. The metal is widely considered a hedge against inflation and a safe-haven asset during times of economic uncertainty.<\/p>\n

Although inflation could serve as an indicator of gold price movements, it may not be the case the other way round. Bank of England policymaker Gertjan Vlieghe warned UK lawmakers on Wednesday<\/a> that it may be a \u201cterrible idea\u201d to look at gold prices as a predictor of inflation.<\/p>\n

\u201cIf you look at previous episodes where the gold price is very elevated, you realize very quickly that gold is a terrible predictor of inflation,\u201d Vlieghe explained.<\/p>\n

(With files from Bloomberg and Reuters)<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Spot gold fell 1.5% with the US dollar moving farther away from its two-year low.<\/p>\n","protected":false},"author":92,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[949,369],"tags":[],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1205217"}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/92"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1205217"}],"version-history":[{"count":2,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1205217\/revisions"}],"predecessor-version":[{"id":1205230,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1205217\/revisions\/1205230"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1205217"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1205217"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1205217"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}