Dollar Rally: Platinum crashes 8%, Gold drops 3.5%, Silver plunges 11%

Platinum slumped over 8% yesterday, sliding to its lowest level in more than a month due a stronger dollar as well as a worry over the second wave of coronavirus in Europe, which is expected to reduce the demand for the metal in the automotive industry. Palladium followed suit, dropping 3.9% to $2265. Stock markets also tumbled amid concerns that economies will be hit by tighter coronavirus restrictions.

The biggest looser, silver, plunged as much as 11% – its lowest level in over a month, but has since recoverd to $24.56. Its sell-off was mostly driven by uncertainty over more U.S. fiscal stimulus that pressured the precious complex as a whole.

Gold’s tumble was the softest of all precious metals, at just over 3%, sliding to its lowest level in more than a month.  The Bullion has traded nearly 10% lower than its all-time high recorded in early August. Gold has climbed about 25% in 2020 so far and reached an all-time high a month ago due to a weak dollar and huge financial stimuli aimed at revitalizing pandemic-devastated economies.

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