Gold closed at a three-month low due to a jump in the dollar

Gold fell sharply on Thursday, its worst day in nearly a week, as fears of inflation pushed the dollar to the brink of a landslide.

THE June delivery gold fell $ 29.10, or 1.6 percent, to close at $ 1,824.60 an ounce, its biggest daily drop since May 2. This is also the lowest closing since February 7. The July silver lost 3.7%, closing at $ 20,773 per ounce.

The ICE US Dollar Index, an index that measures the strength of the dollar against a basket of six major competitors, strengthened 0.9% earlier, reaching a 20-year high. A strong dollar is a negative factor for commodities, as it makes them more expensive for users of other currencies.

“We are currently seeing gold trading near technically dangerous levels,” said Edward Moya, a senior analyst at Oanda. “$ 1,800 no longer looks too far away.”

If the selloff continues to gain ground, we could move on to days when gold would lose $ 100 even in one day, he added, noting that worries about persistently high inflation have given way to others related to potential for a slowdown in global growth, leading many to take refuge in the dollar. Thus, gold is overshadowed as an investment shelter and counterweight to inflationary pressures.

In the other metals, the July copper The pound fell 2.6% to $ 4.1005, with July platinum to “lose” 5.9%, to $ 931.40 an ounce, while the palladium June suffered losses of 7.3%, to $ 1,908.50 per ounce.