BREAKING: Gold Sinks 6% in Worst Month Since 2016

Photo: Reuters

Investing.com - Gold ended November down almost 6%, booking its worst month in four years, as relentless news of progress in Covid-19 vaccines and the diminishing need to hedge against an economic collapse continued to divert money from safe-havens into risk markets and crypto currencies.

Gold for February delivery on New York’s Commodity Exchange Incorporated (Comex) settled Monday’s trade down $7.20, or 0.4% at $1,780.90 an ounce.

It earlier hit $1,767.40, a low not seen since June 19, when it sank to an intraday bottom of $1,745.50.

For the month, the benchmark U.S. gold futures contract lost $112.50, or 5.9%.

It was the yellow metal’s worst ever month since November 2016, when it fell more than 7%.

The loss was even sharper — some $300 or 15% — if compared to where Comex’s front-month for gold stands now versus early August when it hit record highs of nearly $2,090.

For the most ardent fans of gold, the current situation would have been unthinkable just a few months back, when investment banks were forecasting $3,000 an ounce or more before the end of 2020 from a confluence of COVID-19-related stimulus spending and dollar weakness.

Gold has tanked almost without stop since mid-November after a rash of positive announcements on Covid-19 vaccine trials and therapeutics.

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