Gold Down, Near Two-Week Lows as Dollar Strengthens

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Gold was down on Thursday morning in Asia, remaining near two-week lows. A strengthening dollar Index Futures contributed to the yellow metal’s losses, while investors also await the European Central Bank (ECB)’s latest policy decision.

Gold futures were down 0.21% to $1,789.75 by 12:18 AM ET (4:18 AM GMT) after hitting $1,781.30, its lowest level since Aug. 26, during the previous session. The dollar, which usually moves inversely to gold, inched up on Thursday.

The ECB will hand down its policy decision later in the day, where it is widely expected to begin asset tapering while keeping support steady in the years to follow.

Meanwhile, the Bank of Canada kept its interest steady at 0.25% as it handed down its policy decision on Wednesday.

Investor focus is now on whether the U.S. Federal Reserve will begin asset tapering within the year after a disappointing U.S. jobs report released during the previous week. The ever-rising number of COVID-19 daily cases and deaths in the country also continues to be of concern.

In Asia Pacific,Chinese inflation data released earlier in the day said that the consumer price index grew 0.1% month-on-month and 0.8% year-on-year in August. The producer price index grew 9.5% year-on-year.

Meanwhile, the global platinum market will be in surplus this year as mine supply ramps up and investment demand falls, the World Platinum Investment Council (WPIC) forecast on Thursday.

In other precious metals, platinum was down 0.4% and silver inched down 0.1%. Palladium eased 0.2% to $2,245.89, after hitting $2,213.95, its lowest level since Feb. 2, on Wednesday.

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