Gold prices see fresh lows as strengthened dollar weighs on demand

Gold prices saw fresh lows of one-and-a-half year on Wednesday as the broadly strong dollar continued to weigh on demand for bullion.

December gold futures hit a low of $1,190.80, the weakest level since January 2017, and were down 0.74 percent at $1,191.80 on the Comex division of the New York Mercantile Exchange.

Gold prices remained below the psychologically important $1,200 level as fears over contagion effects from Turkey’s financial crisis saw investors continue to seek safety in the U.S. dollar.

The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was up 0.24 percent at 96.77, the most since late June, 2017.

The greenback’s strength continued to offset the safe haven appeal of the yellow metal. A stronger U.S. currency makes gold and other dollar-denominated commodities more expensive for foreign investors.

Weakness in gold also weighed down other metals, with September silver falling 1.78 percent to $14.785 a troy ounce. October platinum was trading at $776.50, off 3.13 percent for the day.

Among base metals, September copper was down 2.72 percent at $2.610.