Gold Price Settles At Lowest Value Since June As Brexit Fears Boost Dollar
New York (Oct 4) Gold for October delivery slumped $42.70 per troy ounce, or 3.26%, to $1266.30 today, its third straight day of losses and its largest one-day percentage decline since December 2013. That’s its lowest settle value since June 23.
Silver also lost ground, falling $1.0820 per troy ounce, or 5.76%, to $17.71, the largest one day dollar and percentage decline since January 2015.
The British pound hit a three-decade low today as the UK government said that it would start the process to extract itself from the European Union no later than March. That’s sent the dollar up against many world currencies, dampening demand for gold, which is priced in dollars: The metal is “falling off a cliff” as MarketWatch reported earlier today.
The VanEck Vectors Gold Miners ETF (GDX) was tumbling 8.6% with the Direxion Daily Gold Miners Index Bull 3X Shares (NUGT) off more than 25% in recent trading. The SPDR Gold Trust (GLD) was down 3.2% while the Direxion Daily Gold Miners Index Bear 3X (DUST) was up 25%. The iShares Silver Trust (SLV) was off 5.3%.