Gold sinks to more than 18-month low
The metal is under pressure as the dollar climbs towards its highest in more than a year amid concern about the global market contagion from Turkish crisis
London — Gold fell to a more than 18-month low on Wednesday as the dollar climbed towards its highest in more than a year on the concern about global market contagion triggered by recent declines in the Turkish lira. Spot gold was down 0.7% at $1,185.46/oz by 11.06am GMT, after hitting its lowest since late January 2017 at $1,183.47. The precious metal failed to make a convincing rebound in the previous session after it fell below the psychologically important $1,200 level for the first time in more than a year on Monday. US gold futures were down 0.7% at $1,192/oz. "The story for gold is very much about dollar strength and emerging market weakness," said Mitsubishi analyst Jonathan Butler. "It’s risk aversion, which is something that should be supportive of gold, but … this is happening in an environment where the dollar is looking very strong relative to other major currencies and emerging-market currencies." The metal has declined about 9% so far in 2018, pressured by rising US i...
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