London — Gold prices hit 17-month lows on Monday, losing out to US treasuries and a stronger dollar as investors sought refuge from a financial market rout triggered by a crashing Turkish lira. Investors traditionally use gold as a means of preserving the value of their assets during times of political and economic uncertainty and inflation. But in 2018 it has failed to benefit as investors made a beeline for US treasuries, seen as the ultimate safe haven, which meant they had to buy dollars. A higher US currency also makes dollar-denominated assets more expensive for holders of other currencies, which subdues demand — a relationship used by funds to generate buy and sell signals from numerical models. Spot gold had dropped 0.8% to $1,201.54/oz by 10.53am GMT, its lowest since March 2017. US gold futures were down 0.83% at $1,208.60/oz. The lira has tumbled on worries over Turkish President Tayyip Erdogan’s increasing control over the economy and deteriorating relations with the US....
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