Gold is failing to find buyers amid the fallout from Turkey’s currency crisis, hitting its lowest level since March 2017 on Monday.
The price of bullion touched $1,203.61 a troy ounce in London trading as the Turkish lira fell to an all-time low.
The collapse in Turkey’s currency is the latest market disturbance that has failed to boost gold’s fortunes this year, despite the metal’s reputation as a safe haven investment. Gold has fallen 9 per cent year-to-date amid an escalating trade war between the US and China.
The lack of enthusiasm is due to the strong dollar, according to analysts. The US dollar rose to its highest level in 13 months Monday, while the yield on the benchmark 10-year US Treasury fell a basis point to 2.97 per cent.
“The persistent US dollar strength has kept investors downbeat on the yellow metal’s prospects,” according to analysts at TD Securities.
In a sign of investor’s apathy gold, demand fell to its lowest level since 2009 in the first half of this year, according to the World Gold Council.
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