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Gold: Strong US dollar causes losses – Commerzbank

There are times when the development of the US Dollar (USD) is of secondary importance for commodity prices denominated in dollars, and there are times when the US dollar is the driving force, Commerzbank’s commodity analyst Barbara Lambrecht notes.

Gold falls below $2,600 on USD strength

“The latter currently seems to be the case. The strong appreciation of the US dollar after Donald Trump's election victory has pushed the Gold price well below the $2,600 mark. It is now $250 below its record high at the end of October.”

“The price decline has been accompanied by significant outflows from Gold ETFs, totalling almost 22 tonnes since the beginning of the month, according to Bloomberg.”

 

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