Gold Falls to One-Month Low as Haven Demand Shifts to Dollar
- Coronavirus flares anew in Europe; ECB may boost stimulus
- CBA cites near-term ‘downward pressure’ on gold; silver eases
A Pamp SA hallmark sits on Swiss-made one kilogram gold bars on display at the Precious Metals Exchange (SGPMX) at Le Freeport in Singapore.
Photographer: Wei Leng Tay/BloombergThis article is for subscribers only.
Gold and silver fell to one-month lows as the coronavirus spike in Europe continued to boost haven demand for the dollar, while investors weighed signs the European Central Bank will increase stimulus this year.
The Bloomberg Dollar Spot Index reached a three-week high. German Chancellor Angela Merkel said the country is in a “dramatic situation” amid strains on health-care services. With record numbers of new Covid-19 cases in Spain, Italy and the U.K., tough new restrictions in Europe are now threatening to pitch the region back into recession.