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MTECHTIPS:-Gold tumbles to 3-week low on stronger dollar, stock market rally

MTECHTIPS:-Gold tumbles to 3-week low on stronger dollar, stock market rally

Gold futures fell to the lowest level in more than three weeks on Wednesday, as a broadly stronger U.S. dollar and rallying global equity markets reduced the appeal of the precious metal. Gold for December delivery on the Comex division of the New York Mercantile Exchange hit an intraday low of $1,110.70 a troy ounce, the weakest level since August 18, before trading at $1,112.30 during U.S. morning hours, down $8.70, or 0.78%. A day earlier, gold lost 40 cents, or 0.04%. The U.S. dollar pushed higher against the other major currencies on Wednesday, amid hopes for further stimulus from China and Japan. The Shanghai Composite tacked on 2.3%, one day after posting a late rally to end up 3%, after China’s finance ministry proposed a series of fresh measures to stimulate economic growth. Hopes for more stimulus measures from the Chinese government increased after data on Tuesday showed that China’s imports shrank far more than expected in August, falling for the 10th straight month. Meanwhile, Japan’s blue-chip Nikkei stock index soared 7.7%, the biggest one-day gain since October 2008, after Prime Minister Shinzo Abe reiterated a pledge to lower the corporate tax rate.
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