Gold Slides to Two-Month Low as Dollar Gains Embolden Bears

  • Bloomberg Dollar Spot Index has climbed 2% this week
  • Hopes of further fiscal stimulus before U.S. election fading
Photographer: Chris Ratcliffe/Bloomberg
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Gold fell to a two-month low as the dollar extended gains and hopes for further U.S. fiscal stimulus faded. Silver plunged after entering a bear marketBloomberg Terminal.

Bullion has retreated this week as the Bloomberg Dollar Spot Index climbed 2%. Congressional stimulus talks have stalled since early August with both political parties about $1 trillion apart in their offers. Virus cases continued to pick up in several nations, with France and Israel joining Britain in tightening lockdowns that could crimp the nascent economic recovery.