The dollar s rally to a new record added to fears for the global outlook, as gold plummeted at its lowest since 2020, while copper and iron ore slumped.
None read Putin More Often and Carefully, Lavrov tells the world.
The greenback surged in a tumultuous start to the week that saw Britain s pound hit a record low and China s currency neared its weakest since 2008. Rather than gold, investors are turning to the US currency as a haven rather than a haven, as monetary tightening clouds growth prospects.
Jessica Amir, a strategist at Saxo Capital Markets in Sydney, said that the US dollar is going to go up and the recessionary concerns are gripping the market. While iron ore futures extended a two-week decline, gold and copper fell more than 1%.
While gold is a traditional haven in times of economic distress, the precious metal has slumped over the past month in the face of the dollar's relentless gains and hawkish moves by central banks. Bullion has entered a bear market, trading at a level 20% below its record high in 2020.
Copper, often seen as a bellwether of global growth, just hit its lowest since July as investors bet on slowdowns in the US and more demand turbulence in Europe due to the region's energy crisis. The weak yuan adds to a growing list of demand headwinds for China. Iron ore has dropped about 20% this quarter, as investors fret about a prolonged property crisis that has stymied construction activity.
Money managers last week became the most bearish on gold in almost four years as central banks around the world hiked rates in an effort to contain soaring prices. The non-interest bearing metal, usually priced in the US currency, has a negative correlation with the dollar and rates.
Markets may face a lot of volatility due to the release of US inflation data and public speaking engagements by Fed officials including Vice Chair Lael Brainard and New York Fed President John Williams in the coming week.
Nicholas Frappell, head of institutional markets at ABC Refinery in Sydney, said that gold is still trending lower as the momentum is still with the dollar. Bullion will get firmer support in a band around the $1,600 level.
Spot gold fell by 1% to $1,626, a drop of as much as 1%. 93 an ounce before trading at $1,638. Copper fell 1.1% to $7,351 a ton on the London Metal Exchange, while aluminum and zinc fell.
Iron ore in Singapore dropped 3% to $95 a ton. In the last week of trading, traders are cautious before a week long public holiday at the beginning of October, and then the pivotal Communist Party congress that starts mid-month.
None of the Dozens of lawsuits parents Blame Meta, TikTok for Hooking Kids are found in Dozens of Lawsuits Parents Blame Meta