Gold plunged to a two-month low and below $900 an ounce on Tuesday. The continual rise of the US dollar is making the metal less attractive and investors are hitting their sell buttons.
On top of the dollar’s rise, falling oil prices have also made gold less appealing.
At 11:42 a.m. (ET), New York spot gold was at $878.10 an ounce.
The yellow metal’s loss was joined by silver and platinum. Silver was down by $0.66, hitting $16.55. Platinum fell below $2,000, sliding down $94 to $1912.
“Everything from cotton to copper and soybeans to silver is off sharply,” said Jon Nadler, senior analyst at Kitco Bullion Dealers. “The ever-weakening dollar had prompted many a fund to pile money into the sector since September last year, pushing values of some commodities well beyond fundamentals.”
On March 17, or just over weeks ago, gold had hit a new record of $1030.80 an ounce.