Bitcoin risks falling into four figures on a continued sell-off in equities and rebounding U.S. dollar.
(Bloomberg) -- Spot gold fell the most in almost five weeks, dipping below $1,900 an ounce as a strengthening dollar diminished demand for commodities.Bullion declined as much as 3.5% to $1,882.51 an ounce and silver plunged as much as 11%. The Bloomberg Dollar Spot Index headed for its biggest gain since June, making raw materials priced in the greenback more expensive for holders of other currencies. Stocks tumbled amid concerns that economies will be hit by tighter coronavirus restrictions.“Equities fell out and the dollar strengthened amid the broad risk-off sentiment in the market,” said Janet Mirasola, managing director at Sucden Futures. “Gold was a victim of a stronger dollar.”Bullion has soared 26% this year and reached an all-time high in early August amid bets on a weakening dollar and massive stimulus aimed at reviving pandemic-ravaged economies. The rally has shown signs of stalling in recent weeks, with a resilient dollar and concern over whether the U.S will push through additional stimulus.Spot gold fell 2.1% to $1,910.69 as of 3:20 p.m. in New York. Comex gold for December delivery fell 2.6% to settle at $1,910.60. Spot silver was down 8.2%.Germany’s health minister warned that the trend of cases in Europe is “worrying” amid expectations that restrictions could soon be extended to London. Former U.S. FDA commissioner Scott Gottlieb said he expects the nation to experience “at least one more cycle” of the virus in the fall and winter.The Bloomberg Commodity Index fell the most since April.U.S. Federal Reserve Chair Jerome Powell is set to appear before House lawmakers Tuesday. The focus of the hearing will likely fall on fiscal policy, with time running short for Congress to agree on another round of spending measures before it shuts down ahead of November elections.Investors also turned to the dollar as a haven as the opening of a U.S. Supreme Court vacancy fueled concern about the increasingly contentious American presidential election. Donald Trump said he wants his court pick confirmed before the Nov. 3 election, escalating pressure on Senate Republicans and Mitch McConnell as the majority leader seeks to protect his most vulnerable members.“The looming Supreme Court fight has reduced the chances of another stimulus deal to negligible, driving equities lower and sending markets reaching for bonds and the USD, all of which pressured the precious complex,” said Tai Wong, head of metals derivatives trading at BMO Capital Markets.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Shares of silver miners got hit hard as precious metals sold off along with the drop in the broader stock market