Gold prices tumbled to 17-month lows on Monday as global investors flocked in dollars to protect themselves from the eroding financial crisis in Turkey and the US-valued precious metal less attractive to investors using other currencies close.
fell $ 12.40 or 1% to $ 1,206.40 an ounce. A deal at this level would mark the lowest value for the futures contract since a settlement just over $ 1,200 on March 15, 2017. The contract saw a decline of 0.3% last week.
A popular exchange-traded metal fund, the SPDR Gold Trust
fell over 1% before-hours, after falling 0.2% in the five days to Friday. 25.3 million ounces of GLD have fallen by about 10% since peaking in April, reaching their lowest level since February 2016, analysts said.
The currency of Turkey
USDTRY + 7.0058%
crashed again on Monday, sending shockwaves through other emerging markets. After lira fell by around 10%, gains increased but remained significantly lower after the Turkish central bank took action that did not completely ease investor concerns.
Lies: Turkish lira reaches deep low as Erdogan's currency crisis echoes through stock markets
The turmoil provided support for traditional port currencies such as the Japanese yen and Swiss franc and raised the dollar against most rivals , The ICE US Dollar Index
DXY, + 1.15%
a measure of US unit against a basket of six major competitors, rose 1.4% to 96.47, up more than a year at its highest level act. It gained 1.3% last week.
Read: Worried about Turkey? Here's what it takes to push the buttons on Wall Street
The gold market has limited itself to short-term dollar trading and limited its ability to generate demand for global market turmoil. In addition to the geopolitical turmoil, the dollar has been supported and subordinate gold has suffered as a result of expectations for two more interest rate hikes by the Federal Reserve this year and three next year.
"If you have outsiders like US President Trump [engaging in a trade fight with China and others] and President Erdogan of Turkey, anything could happen.The liquidity is already low, and the summer trade increases the potential for unpredictable movements," said Richard Perry, an analyst Hantec Markets, and summed up the global markets, including gold.
He said a closing price of $ 1,204 for the precious metal, the 12-month low, could be the key to gold to stave off deeper losses.
Bearish gold sentiment reflected in US Commodity Futures Trading Commission data Gold speculators added 22,195 contracts to their net short position in the week prior to August 7, reaching 63,282 contracts, the largest since its release, according to Reuters data Records 2006.
Around the trade, September silver
slipped 17 cents or 1.1% to $ 15.12 per ounce. According to FactSet, the weekly decline was down 1% and down 8.7% in the last three months.
The comparable silver ETF, the iShares Silver Trust
declined 1.1% on Monday and fell 0.7% last week.
HGU8, + 0.04%
fell 2 cents, or 0.8%, to $ 2,719 a pound. Copper lost 0.9% last week.
Other industrial metals were hit harder. October platinum
fell $ 16.40 or 2% to $ 813.20 an ounce. They risked a return to the 800-dollar line, a 10-year low hit last month by strong market offerings. On Monday, prices were impacted by a two-year low for South Africa's rand against the dollar, as emerging market concerns emanated from Turkey. South Africa is the world's largest producer of platinum.
fell $ 13.00 or 1.4% to $ 888.10 an ounce.
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