Gold Continues to Fall on Strong Dollar

Spot gold hit a nine-month low on Tuesday of $1,204.40 per ounce before rising to $1,207.50 an ounce, ending down 0.7 percent or $8.45 from yesterday’s close. According to Reuters, the metal is down around 5.5 percent for September and stands to drop 9 percent for the quarter.

“Gold bulls’ worst nightmares involve a rampant dollar and surging real interest rates, and this macro-trend is currently being fuelled by the expectation that the ECB policy meeting on Thursday and Friday’s U.S. employment data will highlight the gulf in performance between the euro zone and U.S. economies,” Macquarie analyst Matthew Turner told Reuters.

U.S. gold futures dropped $10.90 to trade at $1,207.90 per ounce.