Look! Gold Prices Are Dropping!

 Yellow metal trading continued lower below $ 1,900 an ounce during today's trading session amid the strengthening of the US dollar.

The precious metal fell more than 1% at the opening of the European session with trading at $ 1,879 per ounce, while gold futures fell at $ 1,883 per ounce (2.25pm ​​Malaysian time).

The greenback dollar, often seen as a haven, reached an eight-week high as risk-off sentiment in the market continued to weaken demand for major currencies.

The latest US and Chinese tensions as well as the optimistic Federal Reserve (Fed) statement may continue to support the greenback dollar, pushing gold to its $ 1,863-ounce target reached in August.

Speaking at the United Nations General Assembly on Tuesday, US President Donald Trump went on to reiterate his statement that China must be held accountable for failing to deal with the spread of the coronavirus.

Federal Reserve (Fed) chairman Jerome Powell testified optimistically before Congress that the U.S. economy remained resilient and that the banking system had survived well in the face of the Covid-19 pandemic crisis.

Chicago Fed President Charles Evans said the U.S. economy has now returned to 90% from pre-pandemic levels and the Fed is likely to raise interest rates before the 2% inflation target is reached.