9 May 2022
Gold Plunges as U.S. Dollar Soars to Two-Decade High
The Index Today
Gold plummeted on Monday as the dollar grew strong, hitting 20-year highs while the U.S. Treasury yields surged to their highest levels since November 2018.
As per Reuters, spot gold edged lower by 0.6% to $1,871.96 per ounce by 0509 GMT. The U.S. gold futures also dipped by 0.5% to $1,873.20. This comes after investors flocked to the greenback, spurred by fears of slackening world economic growth and mounting interest rates.
ANZ Research’s analysts contended, “Aggressive Fed (U.S. Federal Reserve) rate hikes, faster quantitative tightening, the stronger U.S. dollar, and any possible easing of Russia’s invasion of Ukraine are the main possible headwinds for the gold prices.”
Palladium inched up by 0.1% to $2,048.69 while spot silver and platinum retreated by 0.5% and 1.6% to $22.24 per ounce and $948.00 respectively.