Gold set for longest run of weekly losses since 2018 on dollar
BNN Bloomberg
Gold is heading for its fifth weekly loss, the longest streak of such declines in almost four years, with haven credentials sidelined by investors becoming super-bullish on the US dollar.
Bullion has come under relentless pressure in the past month as investors turn to the greenback in the face of an increasingly hawkish Federal Reserve. That trade got another boost this week from soaring US inflation.
“The set-up for a deep liquidation event in gold is building,” Bart Melek, global head of commodity strategy at TD Securities said in an emailed note. “With gold bugs falling like dominoes, prices are now challenging pre-pandemic levels, raising risks that the largest speculative cohort in gold will start to feel the pain under a hawkish Fed regime”
Spot gold slumped below US$1,700 an ounce on Thursday for the first time in almost a year as Bloomberg’s dollar gauge climbed to a record.
