(Reuters) – Gold prices plunge on Tuesday after the dollar hit its highest level in more than a month, while investors doubt Washington will provide additional stimulus to support the coronavirus-hit economy.
The spot gold price dropped 0.38% to $ 1.905.31 per troy ounce by 13:30 Moscow time.
The dollar, also considered a defensive asset, has hit a six-week high against a basket of major currencies as investors move away from risky investments amid rising coronavirus cases and new quarantine measures in Europe. [USD /] [MKTS / GLOB]
“Gold could dip well below yesterday's lows depending on how deep the sell-off in the stock is. It's just an indication of how much investors are panicking,” said Xiao Fu, an analyst at Bank of China International.
“It is unlikely that governments will take additional stimulus measures even if the number of COVID-19 cases rises sharply, as they already used most of their arsenal earlier this year,” he added.
Palladium rose 0.01% to $ 2,273.75 an ounce, while silver slipped 1.99% to $ 24.24 an ounce. Platinum rose 0.95% to $ 889.65 an ounce.
(Nakul Iyer in Bangalore. Translated by Vladimir Sadykov. Editor Anna Kozlova)