Gold gets the biggest monthly drop in the past four years as the Dollar’s value increased. The dollar has its best month since March 2020, and investors have reduced their holdings in bullion-backed exchange-traded funds. As Delta variant worries are rising worldwide, economical disturbances are affecting the global market.
Traders are now focusing on economic data and comments from Fed officials for more clues on the timing of stimulus tapering. Spot gold rose 0.2% to $1,764.84 an ounce at 11:29 a.m. in New York and is down 7.5% this month, the most since November 2016, according to Bloomberg.
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“Looming asset purchase tapering putting upward pressure on real rates and the U.S. dollar brings downside risk for gold,” Morgan Stanley wrote in a note