Gold prices dip to 2.5-year low

Gold prices fell on September 26 morning, to $1,650 per troy ounce, just like in April-May 2020, Report informs referring to the auction data.

The price of December futures for gold on the New York Comex exchange fell by $10.2, or 0.62%, to $1,645.4 per troy ounce. At the same time, earlier in the course of trading, the price dropped to $1,634.2, which was the lowest since April 2020. December silver futures fell 2.01% to $18.53 an ounce.

The continued decline in gold prices can be explained by the fact that in the context of the expectation of a global recession by market players, the dollar has displaced the precious metal from the position of the most desired safe-haven asset. Plus, the resulting strengthening of the US currency is in itself negative for other financial and commodity assets, to which gold also applies.

Thus, the euro exchange rate against the dollar fell to $0.9635 from the last closing level of $0.9690, the dollar against the yen rose to 144.06 yen from 143.32 yen, and the pound sterling against the dollar fell by 2.77% - to $1.0555 from the previous close of $1.0856.

Fears about a recession are associated with high inflation in the global economy and the tightening of the monetary policy of world financial regulators caused by this tightening.