Gold Futures Settle Lower For 2nd Straight Day

Gold prices edged lower on Monday, extending losses from the previous session, as the dollar gained strength against most of its major rivals amid mounting worries about a surge in coronavirus variant across the world.

As signs of growing inflationary pressures and the surge in virus cases raised concerns that the pace of global economic recovery might slowdown significantly, traders shunned risk and chose to bet on the dollar.

The dollar index, which rose to 93.04 in the European session, dropped to 92.64 by mid-morning, but recovered subsequently and was hovering around 92.85 a little while ago, netting a gain of 0.18%.

According to reports, global coronavirus caseload has surpassed 190 million due to the spread of new variants. In the U.S., Europe and Asia, daily infections have been surging and the global seven-day average of new cases each day is over half a million for the first time since May.

Gold futures for August ended down by $5.80 or about 0.3% at $1,809.20 an ounce. Gold futures ended down by $14.00 or about 0.8% on Friday, snapping a 3-day winning streak.

Silver futures for September closed lower by $0.651 at $25.144 an ounce, while Copper futures for September settled at $4.2015 per pound, down $0.1215 from the previous session.

In economic news, a report from the National Association of Home Builders showed an unexpected dip in U.S. homebuilder confidence in the month of July.

The report showed the NAHB/Wells Fargo Housing Market Index edged down to 80 in July from 81 in June. The modest decrease surprised economists, who had expected the index to inch up to 82. With the unexpected drop, the housing market index slipped to its lowest level since hitting 78 in August of 2020.

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