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Title: Gold Up as Dollar Strengthens, but European COVID-19 Concerns Cap Losses

Nov 21, 2021 11:35PM ET

By: AnalysisWatch

Gold was down in Asia on Monday morning, however settled subsequent to hitting a low for very nearly fourteen days. However, concerns over the rising number of COVID-19 cases in Europe helped limit gold's losses.

Gold futures fell 0.26% to $1,846.70 an ounce by 11:17 PM ET (4:17 AM GMT). The dollar, which normally moves inversely to gold prices, rose slightly on Monday but fell back from a record high reached on Friday.

Across the Atlantic, the rising number of COVID-19 cases in Europe forced Austria to impose a full lockdown from Monday. Neighbouring Germany also wants to tighten restrictive measures.

On the central bank front, Bundesbank President Jens Weidmann warned on Friday that inflation could remain above 2% for some time and that the European Central Bank should avoid any commitment to keep the money tap open.

In an indicator of sentiment, the SPDR Gold Trust reported that its holdings rose 0.8% to 985 tonnes on Friday from 976.87 tonnes on Thursday. Demand for physical gold in major Asian centres declined in the previous week. However, traders in India are expecting an upswing due to the upcoming wedding season.

In other precious metals, silver fell 0.1%, platinum slipped 0.6% to $1,025.33 and palladium fell 0.7%.

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