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PRECIOUS-Gold slides to 2-month low as dollar extends rally
Published at 24/09/2020 at 13:28

* Gold down for a fourth straight session

* Silver slumps as much as 5.3% to more than two-month low

* Platinum hits lowest since July 17

* Interactive graphic tracking global spread of coronavirus:

(Updates prices)

By Nakul Iyer

Sept 24 (Reuters) - Gold dropped to a more than two-month low on Thursday, hurt by a robust dollar, while the lack of additional stimulus measures to aid the virus-stricken economy dented sentiment further.

Spot gold had fallen 0.3% to $1,857.88 per ounce by 1211 GMT, extending losses into a fourth session. Earlier in the day, it hit its lowest since July 22 at $1,847.57.

U.S. gold futures were down 0.4% at $1,860.30.

"As long as the greenback is recovering strength, bullion is going to lose out," said ActivTrades chief analyst Carlo Alberto De Casa.

While it would be premature to declare the start of a new bearish movement, the coming days will be decisive in whether gold can rebound to $1,860 or continue to decline, he added.

The dollar index held recent gains, making bullion more expensive for holders of other currencies.

Adding to the uncertain outlook for gold, U.S. Federal Reserve officials reaffirmed their low interest rate policy until the labour market recovers or inflation rises to 2%, but failed to offer a path for further stimulus.

"It seems the Fed has pretty much tied themselves into no immediate action... So, the stimulus side of this trade is looking rather bleak in the short term," Edward Moya, a senior market analyst at OANDA, said.

Gold is viewed as a hedge against inflation, currency debasement and economic uncertainty.

Gold's fall came despite increased doubts over an economic recovery underscored by data showing business activity in the United States and Europe cooled in September.

Investors are waiting for data on U.S. weekly jobless claims, which are expected to remain high despite showing a slight decline.

Elsewhere, silver fell as much as 5.4% to $21.64 per ounce, its lowest since July 22, and was last down 2.9% at $22.20 per ounce.

Platinum fell 0.9% to $830.91 per ounce having hit a more than two-month low of $827.50 earlier, and palladium dipped 0.4% to $2,212.00.

(Reporting by Nakul Iyer and Eileen Soreng in Bengaluru; editing by Barbara Lewis, Kirsten Donovan)

((nakul.iyer@thomsonreuters.com; Within U.S. +1 646 223 8780, Outside U.S. +91 80 6749 0417; Reuters Messaging: nakul.iyer.thomsonreuters.com@reuters.net))