Launceston — Gold bulls must be wondering what needs to happen for them to catch a break, as recent positive demand numbers from top consumers India and China were blown away by the crisis gripping Turkey. Spot gold dropped to as low as $1,191.35 an ounce during Monday’s trade, the lowest since January 2017 and taking the precious metal’s year-to-date loss to about 8.4%. The latest travail for gold is to be found in Turkey’s currency crisis, which saw the lira plummet as much as 18 percent against the US dollar on August 10, taking its losses for the year to more than 40%. The catalyst for the plunge at the end of last week was an escalation of a dispute with US President Donald Trump, in which he doubled the tariff on imports of steel and aluminium from his country’s erstwhile ally in Nato. Turkey isn’t a major consumer of gold, but it still bought 21.6 tonnes in the second quarter of 2018, and it was the fifth-biggest buyer in the year to the end of June, according to data from th...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Sunday Times Daily.

Already subscribed? Simply sign in below.

Questions or problems? Email or call 0860 52 52 00. Got a subscription voucher? Redeem it now