Gold price falls to 4-week low of just above $1,100 per troy ounce

Gold dropped to a four-week low of close to $1,100 per troy ounce yesterday and is trading only marginally higher this morning. Firm equity markets and an appreciating US dollar put pressure on the price. Furthermore, the SPDR Gold Trust, the world's largest gold ETF, saw its highest daily outflow since the end of July yesterday, at 4.2 tons. 

Equity markets in the US fell sharply in the late afternoon, and the US dollar shed its gains again, though this failed to give any buoyancy to the gold price. In euro terms, gold dipped clearly below the €1,000 per troy ounce mark yesterday, and this morning is trading at a two-week low of around €985. 

The precious metals with an industrial character were tied more to the weak gold price yesterday than to the firm base metal prices, and decreased in some cases by more than 2%. 

"Additional pressure could come in the form of weak Chinese car sales figures, which declined year-on-year in August for the third consecutive month", says Commerzbank.