The US dollar index, which measures the greenback against six major currencies, rose for the third session in a row. Analysts believe the dollar’s strength is partly due to anticipation of potential shifts in US fiscal and monetary policy.
Meanwhile, the gold price declined to a one week low as the dollar strengthened. Spot gold dropped by 0.5 percent to US$2,387.99 per ounce, while US gold futures decreased by 0.4 percent to US$2,389.40.
Investors are closely watching for additional US economic data and statements from Federal Reserve officials this week, which could provide further insight into the future direction of interest rates.
“It is far too early for any strategic positions… longer-term is probably more favorable for gold if Trump is in the White House,” StoneX analyst Rhona O’Connell opined in a note quoted by Reuters.
“Trump would be inflationary and potentially incendiary in geopolitical terms, while Harris’ foreign affairs policy is as yet undefined so that favours gold for now, but not possibly in the longer term,” she added.
Key data releases this week include US gross domestic product figures for the second quarter, and the personal consumption expenditures price index, which is the Fed’s preferred inflation gauge.
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
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