Gold set for fifth weekly fall as Turkish lira crisis bolsters the dollar
London — Gold prices were on track for their fifth consecutive weekly fall on Friday as the dollar surged to its strongest in more than a year, making bullion more expensive for buyers using other currencies. Investors rushed to the safety of the dollar as the Turkish lira collapsed as much as 14% on Friday to a record low; Russia’s rouble crumbled to a two-year low; and the euro and pound touched their weakest in a year. With the turmoil in Turkey spreading to other markets, gold, traditionally used as a safe investment in times of uncertainty, also saw some extra interest, Saxo Bank analyst Ole Hansen said. But this was overpowered by the effect of the strong dollar, he added. "There is a battle going on [in the gold marke] between the strengthening dollar and some safe-haven demand emerging from the contagion risk following the collapse of the lira." Spot gold was down 0.2% at $1,210.15 an ounce at 9.45am GMT, with the dollar 0.5% stronger against a basket of major currencies. US...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.