Plus   Neg

Gold Extends Losses For Fourth Day

Gold prices fell for a fourth straight session on Tuesday as reports of German stimulus plans helped sustain investors' appetite for riskier assets.

Spot gold dropped 0.4 percent to $1,492.69 per ounce, after having hit its lowest level since Aug. 13 at $1,486 earlier in the session. U.S. gold futures were down 0.7 percent at $1,501.10 per ounce.

Bullion prices have fallen nearly 5 percent since hitting a more than 6-year peak of $1,557 on Sept. 4 amid hopes of progress in U.S.-China trade talks and talk of aggressive central bank stimulus.

German bond yields rebounded from record lows to hit one-month highs after reports that Berlin is considering taking on more debt to boost spending.

Ahead of Thursday's European Central Bank meeting, investors remain convinced the central bank would introduce a stimulus package that includes a rate cut to boost growth amid the ongoing U.S.-Sino trade war.

Analysts, however, remain divided over whether the ECB will opt for a massive extension of bond purchases known as quantitative easing.

The Federal Reserve will continue to act "as appropriate" to sustain the U.S. economic expansion, Fed Chair Jerome Powell said Friday in Zurich, bolstering expectations for a rate cut at the Fed's meeting on Sept. 18.

For comments and feedback contact: editorial@rttnews.com

Market Analysis

Follow RTT