Gold continues fall as traders take stock after market slump

Bloomberg

Gold edged lower for a fourth day as investors took stock following a broad sell-off that rattled equity and commodity markets, with the weakness stoked by concerns about economic growth.

Bullion was down 0.3 percent after posting a similar decline in the previous session as a gauge of the US dollar — a go-to asset at a time of market stress — rose for a fifth day.

The ructions will spur additional interest in payrolls data due Friday. Any signs of labor-sector weakening are likely to support a more aggressive pivot to easing by the Federal Reserve, potentially aiding gold.

Gold has rallied by more than a fifth this year, supported by growing optimism that the Fed will start cutting rates from this month. Lower borrowing costs typically benefit the metal, which doesn’t pay interest. Robust over-the-counter purchases and haven demand have also underpinned the advance.

Spot gold fell to $2 484.77 at 8:37 a.m. in London, after peaking at a record $2 531.75 in August. The Bloomberg Dollar Spot Index dipped 0.2 percent. Silver, platinum and palladium declined.