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Gold hits 6-week low hit by firm dollar, ETF eases

Gold prices fell to a six-week low on Tuesday, with firmness in the dollar sapping demand as investors awaited the Federal Reserve’s two-day policy meeting starting later in the day and its economic outlook.

The dollar was firmer against the euro and most other major currencies except the yen after a broad sell-off in U.S. stocks on Monday raised doubts about the economic recovery, with gloomy World Bank forecasts adding to weak market sentiment.

Gold has often benefited from a similar sense of investor risk aversion, but traders said the dollar’s strength was instead weighing on bullion at the moment.

A stronger dollar also makes dollar-denominated assets appear more expensive.

“Right now, market players are closely watching the dollar given … read more ->

Gold recovers to $930 but weak stocks limit gains

TOKYO – Gold clawed back above $930 an ounce on Tuesday, after falling by more than $30 from last week’s peak of $965 on a rally in the dollar, which had led to a shift of funds out of commodities.

While light physical buying has stopped gold’s fall at around $925, investors are cautious about buying aggressively given renewed weakness in global stock markets and after the euro hit its lowest level in almost a month against the dollar.

Gold had risen to $932,10 an ounce by 0542 GMT, up 0.5 percent from New York’s notional close of $927,85. It was down 3,4 percent from last week’s peak of $965,25.

Earlier this month, bullion rose towards $1 000 an ounce … read more ->