A worker pours molten gold into a mould during the refining of bullion at the Rand Refinery Ltd. plant in Germiston, South Africa, on Wednesday, Aug. 16. 2017. Established by the Chamber of Mines of South Africa in 1920, Rand Refinery is the largest integrated single-site precious metals refining and smelting complex in the world, according to their website.( Photo: Waldo Swiegers/Bloomberg via Getty Images) “The downbeat atmosphere in the European markets is keeping gold under some pressure” with the spot price breaching $1,880 an ounce, StoneX analyst Rhona O’Connell said in a note.
Exchange-traded funds backed by gold posted the biggest outflow in more than a month, according to an initial tally by Bloomberg.
Gold dropped 0.4% to $1,869.85 at 3:59 p.m. New York time after touching $1,860.04, the lowest since Sept. 28. The price headed for the third straight monthly decline, the longest slump since April 2019.
Gold futures for December delivery fell 0.6% to settle at $1,868 on the Comex.
Spot silver eased 0.2% to $23.34 an ounce after touching $22.59, a four-week low. Platinum and palladium dropped almost 2%.
“We think there will be ongoing downward pressure on gold prices in the near term as the dollar finds support from global growth concerns,” said Vivek Dhar, an analyst at Commonwealth Bank of Australia. “There is a high risk of a double-dip recession in the euro zone because governments are reinstating broad-based lockdown measures.”
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