Gold dropped again as investors buckled in for yet another volatile week, with the dollar extending its record-setting ascent after the global death toll from the pandemic surged and governments battled to address the mounting crisis with ever-more Draconian measures.
The traditional haven has been struggling for grip amid the turmoil, with many investors turning instead to the greenback for refuge as stock markets tumble and margin calls spread. On Monday, S&P 500 futures hit limit down, and Asian equities fell. The number of virus cases topped 325,000 worldwide.
Spot gold retreated as much as 1%, before trading 0.7% lower at $1,488.43 an ounce at 6:38 a.m. in London. The Bloomberg Dollar Spot Index rose 0.4% to a record, before easing. The uncertainty has caused a measure of bullion's swings over 30 days to soar to a level not seen since 2013.
Source : Bloomberg