Posted October 28, 2018 11:01:59With gold trading at its lowest level in more than a month, the price of the precious metal has dropped as the world’s supply outlook grows more gloomy.
Gold has slumped as the Chinese economy struggles and concerns about the US presidential election rise.
Gold prices are falling amid concerns about China’s economic growth, a weak dollar, the Brexit vote in the UK, and the prospect of a trade war in the South China Sea.
Gold and the US dollar have fallen since Donald Trump took office in January, falling nearly 5% against the greenback in a week.
Gold was last trading at $1,265.47 an ounce on Friday, its lowest since January 2016.
The drop has forced gold to decline 0.2% since mid-October, according to the Metals Market Advisors website.
In the week to October 28 the price was down 1.6% to $1.2436 an ounce.
The global outlook for gold is bleak, with global demand for the metal set to fall in the second half of the year.
China’s slowing economy, its most populous nation, and uncertainty over the US elections have led to gold’s plunge, said Andrew Tavenner, managing director of the Metres Markets Group in Hong Kong.
Gold is expected to fall 6.4% to its lowest price since May 2019.
The US is set to be the biggest exporter of gold in 2018, with demand for precious metals surging amid concerns over the global economy and the Trump administration, said Michael Kiely, an analyst at Capital Economics in London.
Gold futures closed down 1 cent at $947.35 an ounce, the lowest since March.
The Dow Jones Industrial Average (DJIA) was up 12.6 points, or 0.6%, at 21,858.03.
The S&P 500 (SPX) was down 2.9 points, 0.7%, at 2,934.76.