Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold fell 1.6% to close under $1,199, an 18-month low, as the dollar surged on concerns that Turkey's currency crisis may destabilize the eurozone banking sector.

The Turkish lira's freefall extended for a second day, dropping to an all-time low against the dollar and triggering fears of contagion throughout the eurozone. The currency fell 16% against the dollar on Friday after President Trump tweeted his intention to double aluminum and steel tariffs on Turkey.

Struggling with 15% annual inflation and hundreds of billion of dollar in foreign debt, Turkey is vulnerable to sovereign default as its currency plunges in value, making it harder to repay its debt. The European Central Bank voiced concern on Friday that financial contagion from Turkey could infect the European banking system.

The dollar surged 1.3% against major rivals, extending Friday's rally to a 14-month high, as the euro slid to a 13-month low under pressure from the lira selloff. A stronger dollar weighs on gold and other commodities priced in it for global trade by making them more expensive in other currencies.

Separately, the New York Fed reported that consumers are growing pessimistic about the near future, with 12-month expectations falling for wage growth, household spending, stock prices, and housing.

The other precious metals also fell hard, with silver and palladium losing 2% and 2.2%, respectively, while platinum tumbled 3.6% to a 10-year low.

At the Comex close: December gold fell $20.10 to $1,198.90; September silver dropped 31 cents to $14.98; October platinum plunged $30.10to $799.50; and September palladium lost $20.20 to $880.90 an ounce.