• Connect with us
    • Information
      • About Us
      • Contact Us
      • Careers
      • Partnerships
      • Advertise With Us
      • Authors
      • Browse Topics
      • Events
      • Disclaimer
      • Privacy Policy
    • NORTH AMERICA EDITION
      Australia
      North America
      World
    Login
    Investing News NetworkYour trusted source for investing success
    • NORTH AMERICA EDITION
      North America
      Australia
      World
    • My INN
    Videos
    Companies
    Press Releases
    Private Placements
    SUBSCRIBE
    • Reports & Guides
      • Market Outlook Reports
      • Investing Guides
    • Button
    Resource
    • Precious Metals
    • Battery Metals
    • Base Metals
    • Energy
    • Critical Metals
    Tech
    Life Science
    Precious Metals Market
    Precious Metals News
    Precious Metals Stocks
    • Precious Metals Market
    • Precious Metals News
    • Precious Metals Stocks
    gold investing

    Precious Metals Record Losses as Dollar Rises

    Teresa Matich
    Sep. 09, 2014 05:00PM PST
    Precious Metals

    The US dollar is going strong, but as many gold bugs know, that isn’t great news for the gold price. Silver, platinum and palladium also fared poorly today.

    The US dollar is going strong, but as many gold bugs know, that isn’t great news for the gold price.

    The yellow metal dropped below the $1,250-per-ounce mark today, with silver, platinum and palladium all following the downward trend. According to Reuters, it was the US dollar climbing to a 14-month high that put pressure on those commodities.

    Spot gold reached a three-month low of $1,247.15 before edging back up to $1,249.34 midway through the afternoon. On the COMEX, futures for delivery in December sank $5.80, to $1,248.50. As Bloomberg reported, gold has lost approximately 5.6 percent so far this quarter, and Q3 could ultimately bring the metal’s first quarterly loss for 2014.

    According to The Wall Street Journal, investors have been “flocking to the U.S. currency” as the country’s economic recovery quickens. Positive data has raised expectations that the Federal Reserve will raise interest rates earlier than expected.

    James Cordier of Liberty Trading Group told the news outlet, “[t]he stronger dollar and weak U.S. inflation are keeping investors on the sidelines.”

    Euro, geopolitics not helping

    Alongside the dollar’s stellar performance, the euro has declined to a 14-month low. That’s also negatively affecting some of the commodities markets — Kitco News states that while a strong dollar pulls investors away from gold, the weak euro is raising “concerns in the EU regarding the potential for sustained deflationary consumer and producer price pressures.”

    Furthermore, geopolitical tension surrounding Ukraine, which has been buoying up gold prices, appears to be easing. Prices spiked in July when a Malaysian passenger airplane was shot down in Eastern Ukraine, with that country accusing Russia of causing the crash. However, a ceasefire between the countries seems to be holding well, and the situation appears stable despite the fact that further sanctions are expected to be implemented by the European Union against Russia this week.

    Indeed, Frank McGhee, head dealer at Integrated Brokerage Services in Chicago, told Bloomberg, “[p]olitical turmoil in various parts of the world that made gold attractive earlier this year seems to have eased, and now economics is overriding geopolitical events. People are moving to the dollar as the U.S. is emerging as the safe-haven economy.”

    What’s next?

    Moving forward, dedicated gold bugs will no doubt be watching for reports from the Federal Reserve as to whether or not interest rates will be raised — and, if so, by how much.

    They’ll also likely be keeping an eye on other precious metals. Elsewhere on the market, platinum and palladium both lost 0.8 percent today to trade at $1,379.75 and $860 per ounce, respectively. For its part, silver fell 0.5 percent, hitting $18.89 per ounce.

     

    Securities Disclosure: I, Teresa Matich, hold no direct investment interest in any company mentioned in this article. 

    european unionrussiadownward trendgold investing
    The Conversation (0)

    Go Deeper

    AI Powered

    Increase in Net-Long Positions Suggests Gold Poised to Rally

    Silver Price Stays Below $30, May End the Year Down

    Latest News

    Completion of Wudinna Gold Assets Sale & Payments Received

    Lahontan Acquires Strategic Claims South of The York Pit, Expanding The Santa Fe Mine Project

    Apollo Silver Congratulates Equinox Gold on FAST-41 Permitting

    Kobo Resources: Unlocking West Africa’s Untapped Gold Potential

    Fast-Tracking Gold Production at Livingstone Project WA

    More News

    Outlook Reports

    Resource
    • Precious Metals
      • Gold
      • Silver
    • Battery Metals
      • Lithium
      • Cobalt
      • Graphite
    • Energy
      • Uranium
      • Oil and Gas
    • Base Metals
      • Copper
      • Nickel
      • Zinc
    • Critical Metals
      • Rare Earths
    • Industrial Metals
    • Agriculture
    Tech
      • Artificial Intelligence
      • Cybersecurity
      • Gaming
      • Cleantech
      • Emerging Tech
    Life Science
      • Biotech
      • Cannabis
      • Psychedelics
      • Pharmaceuticals

    Featured Precious Metals Stocks

    1911 Gold

    AUMB:CC

    Kobo Resources

    KRI:CC

    Brunswick Exploration

    BRW:TCM
    Brunswick Exploration Logo

    Piche Resources

    PR2:AU

    Quimbaya Gold

    QIM:CC

    Sranan Gold

    SRAN:CC
    More featured stocks

    Browse Companies

    Resource
    • Precious Metals
    • Battery Metals
    • Energy
    • Base Metals
    • Critical Metals
    Tech
    Life Science
    MARKETS
    COMMODITIES
    CURRENCIES
    ×