Gold Prices hit near two years low
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*LONDON - Gold prices touched below $1,200 per ounce on Monday to their lowest since late January 2017, losing out to U.S. Treasuries and a strong dollar as investors sought refuge from a financial market rout triggered by a crashing Turkish lira.*
Investors traditionally use gold as a means of preserving the value of their assets during times of political and economic uncertainty and inflation, but it has this year failed to benefit. Instead investors have made a beeline for U.S. Treasuries, seen as the ultimate safe haven, which meant they had to buy dollars.
The lira has tumbled on worries over Turkish President Tayyip Erdogan’s increasing control over the economy and deteriorating relations with the United States. An investor flight to safety lifted U.S. Treasury yields from four-weeks lows.
