Gold Tumbles As Dollar Dominates Flight To Safety

9 May 2022 , 03:13 PM

Gold tumbled back on Monday below $1.870 per ounce in European session, tracking a strong dollar amid surging risk aversion. The precious metal is currently quoting at $1863.25 per ounce. Dollar surged to its highest level in two decades, as investors flocked to the safe haven currency amid heightened uncertainty. Russia-Ukraine war situation, rising Covid cases in China, global inflation concerns and US Fed aggressive on interest rates are driving investors demand for dollar. Besides, leaders from the Group of Seven developed democracies pledged Sunday to phase out or ban the import of Russian oil, adding to concerns. The dollar index, that measures the greenback against a basket of currencies surpassed 104 mark, hitting fresh 20-year highs. Weaker tone in equities as investors turn risk-off could benefit the safe-haven yellow metal and help limit any further losses. However, the dollar-denominated gold is weighed down by US benchmark treasury yields that stand tall at 3.185%, pushing dollar further up. Investors now await fresh US inflation data due on Wednesday. Powered by Commodity Insights