Gold en route its worst month in 4 years

Gulf Today Report

Gold prices slump on Monday in what is likely to be its worst in four years, due to investors taking up riskier assets as hope for the vaccine to revive the economy increases.

Spot gold declined about 1% to $1,771.22 per ounce by 04:52 GMT, shedding 5.7% so far this month - its biggest since November 2016.

Michael McCarthy, chief strategist at CMC Markets said, “vaccine-inspired optimism about an economic bounce is really eroding the attraction of safe-haven investments like gold.” 

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Adding, the unfortunate fall of gold below $1,800 was another trigger for the sell-off.

Investors are waiting for congressional testimony by US Federal Reserve Chairman Jerome Powell this week.

Gold serves as a shield against inflation and currency debasement.

Silver slipped 2.9% to $22.03, platinum fell 0.5% to $959.13 and palladium was down 0.2% at $2,420.36.