Gold falls with the rise of the dollar, but falling stocks due to lower oil limits losses

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Gold retreated Tuesday due to the dollar’s rise, but what limited the losses was the decline in stock markets due to pressure from falling US oil futures below zero for the first time in the previous session.

And gold fell in spot transactions 0.2 percent to 1689.17 dollars an ounce by 06:11 GMT, after jumping by about one percent on Monday as the collapse in the oil market raised the demand for safe haven. In US futures, gold lost 0.3 percent to $ 1706.70.

“There is a kind of tug-of-war struggle between gold and the dollar now … Gold is beginning to separate from stock gains. We have seen a decline in exchanges and provided that support for safe havens and this partly leads to higher gold and bond prices as well as the dollar,” said Kyle Roda, an analyst at IG Markets.

At times, the yellow metal moved following the stock movement this year, as the recent sharp waves of selling prompted investors to also sell precious metals to cover their losses in other positions.

The dollar rose against the major currencies, which increases the cost of gold to investors holding other currencies.

Despite the return of US oil to the positive region today, Tuesday, its historical collapse caused the largest decline in Asian stock markets in a month.

Roda said the continuing risks in the oil market would “provide some support for gold.”

A Reuters poll showed that the average price of gold is expected to remain below the recent highs recorded during 2020 and 2021, as the strength of the dollar and the weakness of individual consumption will overshadow an increase in demand from investors seeking safety in the yellow metal.

As for other precious metals, palladium fell 0.8 percent to $ 2147.53 an ounce, platinum fell 0.3 percent to $ 768.39 and silver fell 1.1 percent at $ 15.21 an ounce.

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