Gold endured its biggest tumble in three and a half months ( falling -2.5% ) as any risk premium from Fed leadership uncertainty evaporated and as yields and the greenback rallied. Metal for December delivery settled US$45.30 or 2.4 per cent lower at US$1,806.30 an ounce. The NYSE Arca Gold Bugs Index shed 1.66 per cent.
“Gold is getting punished as stocks hit fresh record highs and the dollar soars after President Biden selected Jerome Powell for a second term as Fed Chair,” Edward Moya, senior market analyst at Oanda, said.
