Gold fell on Wednesday, as a rising dollar spurred investors to take profits after tumbling stocks pushed the metal to a more than three-month peak in the previous session. The dollar, as measured against a basket of other currencies .DXY , hit its highest since Aug. 17, potentially weighing on demand by making bullion more expensive for holders of non-dollar currencies.
Downbeat economic data across Europe and upbeat data for the US shored up the US dollar index overnight and weighed on LME copper. LME copper fell past $6,200/mt to a low of $6,171/mt overnight. The SHFE 1812 contract ended in the red overnight even as it rebounded from a low of 49,980 yuan/mt. In addition to the robust US dollar, weakness across equity markets which dented investor risk appetite also pressured copper prices.
Oil prices fell by around one percent on Thursday, coming under pressure from sharp selloffs in global stock markets, with U.S. stocks posting the biggest daily decline since 2011 to wipe out the year’s gains. Oil prices fell under extreme selling pressure … as the steep selloff across stock markets fuelled fears over a possible drop in oil demand growth,” said Lukman Otunuga, analyst at futures brokerage FXTM.
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