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Gold drops below US$1,700/oz, again

Gold has slid below US$1,700 an ounce for the second time this month.
Gold drops below US$1,700/oz, again Gold drops below US$1,700/oz, again Gold drops below US$1,700/oz, again Gold drops below US$1,700/oz, again Gold drops below US$1,700/oz, again

Image: World Gold Council

Staff reporter

Some pundits have pointed the finger at Bitcoin's growing appeal, others cite the strengthening US economy and yields and the rollout of COVID-19 vaccines denting gold's safe-haven allure.

Gold was worth about $1,685/oz on the spot market at the time of writing.

It had dipped to $1,677/oz earlier this month, $100/oz above the low point of 12 months ago but well off the all-time high above $2,000/oz reached in August.

Barrick Gold lost 2.88% in Toronto, Newmont closed down 3.68% in New York and Fresnillo fell 4.05% in London.

US president Joe Biden is set to unveil an infrastructure package of up to $4 trillion later today although "this bold attempt to transform US industrial policy is likely to meet a lot of resistance and it will have less of a direct impact on the economy" than his first relief package, Marex Spectron's Anna Stablum said.

Market futures were mixed for the final day of the first quarter.