Gold had been on a tear in 2020, and the reversal represents a challenge for the metal’s backers. The traditional haven has been favoured as the pandemic pummeled the global economy, prompting central banks and governments to deploy unprecedented stimulus. On Monday, DoubleLine Capital LP’s Jeffrey Gundlach said he expects gold to keep trading higher despite the setback.
Spot gold sank as much as 2.1% to US$1,872.61 an ounce and traded at US$1,883.29 at 10:11 a.m. in Singapore. Gold futures also tumbled on the Comex, while silver dropped sharply.
Benchmark Treasury yields have climbed more than 10 basis points so far this month, amid improving risk appetite and an imminent flood of debt issuance. The recent rebound reflects investor hope that the coronavirus will be contained amid Russia’s vaccine, according to Standard Chartered Plc.
