Gold Price Hits 6-Week Dollar Low as Euro Falls After Catalonia Vote

Jon Economy, Fiscal Policies, Gold, Government, Market Commentary, Politics, Precious Metals

Gold prices fell to new 6-week lows in London trade Monday as the Dollar rose and world stock markets edged higher.
The Euro slipped after Sunday’s clashes with civil police in Spain’s Catalonia region as people voted for independence in what the national government called an illegal ballot.
“With this day of hope and suffering,” said regional president Carles Puigdemont in Barcelona, “the citizens of Catalonia have won the right to an independent state in the form of a republic.”
Gold priced in the Euro meantime crept back up to 1085 per ounce as the single currency slipped on the FX market, unwinding last week’s 2 drop but holding 4% below early September’s 4-month high.
“The prospects of further monetary tightening in developed economies have started to weigh on the price of gold,” says a note from head of precious metals sales Tom Kendall at Chinese-owned bullion bank ICBC Standard, pointing to the Fed and ECB discussing balance-sheet reduction while the Bank of England’s “hints” at UK rate rises.

This post was published at FinancialSense on 10/02/2017.