Canadian Federal Election day is scheduled earlier for Monday, September 20 by Prime Minister Justin Trudeau’s snap election request.
Gold slumped as the dollar strengthened after a rally triggered by the Bank of England’s (BOE) decision to launch a bond-buying program to support Treasury bonds.
An ounce of gold tested below the $1,642 level in the spot market.
Spot gold has been under pressure for the past two weeks, with the dollar hitting record highs and a 2.5-year low.
While BOE’s intervention increased the decline in bond yields, it caused some relief in gold priced in dollars. Spot gold gained 1.9 percent on Wednesday, posting its biggest daily gain since early March.
“Despite the recent rally, global recession concerns will continue to be the determining factor for gold,” said Avtar Sandu, Senior Commodity Manager at Phillip Nova. Sandu also added that analysts would watch whether spot gold, which sees the $2,000 level, is at the bottom of the 2.5-year low this week.
While gold-backed ETFs fell to the lowest level since May 2020, with the Fed signaling that it will continue to raise interest rates, the sentiment for the precious metal remains bearish.