Jung Yeon-Je/Agence France-Presse/Getty Images Gold futures fell sharply Wednesday to mark their lowest settlement in about a month as declines in global equities, in reaction to rising COVID-19 cases in Europe and the U.S., prompted investors to take refuge in the U.S. dollar.
“The go-to safe haven just now is the U.S. dollar and the combined effect of a strong dollar, plus the need for investors to raise funds for margins calls,” conspired to see gold lower, Ross Norman, chief executive officer of Metals Daily, told MarketWatch.
The dollar rose sharply, with the ICE U.S. Dollar Index DXY , a gauge of the currency against six major rivals, up 0.5%. A stronger dollar can be a weight on dollar-denominated commodities, making them more expensive to users of other currencies.
Still, if history is a guide, then the gold correction will “only be a short term issue and it will be the scale […]
November 4, 2020 (updated November 4, 2020) Published by StockMan