Gold hits two-week low as Abe election victory lifts dollar

Reuters/Jan Harvey/10-23-17

Gold hit a more than two-week low on Monday as expectations that Japan’s ultra-loose monetary policy would stay in place after Prime Minister Shinzo Abe’s election victory at the weekend lifted the dollar to a
three-month high versus the yen.

Abe’s win also fed into positive sentiment in equity markets that were buoyed last week by fresh optimism about tax cuts in the United States, curbing interest in gold as an alternative asset.

…”(Gold) is just following what the dollar is doing,” said Natixis analyst Bernard Dahdah. “People are also getting more excited about the stock markets, and that removes a bit of business from gold.”

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