Gold drops almost $70 as US stocks selloff

Gold drops almost $70 as US stocks selloff

Gold dropped to its lowest level in 5 weeks as the metal had its biggest one day drop since late last August.

The fall came as traders saw red across their dashboards through mid-day today, with the Dow Jones falling close to over 900 points, or 3.4%. Meanwhile the S&P 500 lost 2.6% and the NASDAQ also saw declines of around 2.1%.

After a muted reaction to last week’s FOMC announcement, today’s moves have sparked markets to life as we approach the upcoming U.S. elections. Volatility was also sparked by negotiations for a new coronavirus stimulus bill and the passing of Supreme Court Justice Ruth Bader.

UK COVID-19 cases highest since May

COVID-19 cases in the UK have risen at their fastest pace since May. Reports showed that daily cases have passed 4,000 for the first time in 4 months, with the 4,368 cases reported.

According to the UK’s Chief Scientific Advisor, Britain could potentially see over 50,000 new coronavirus cases a day in the next few weeks, providing no further action is taken.

This has led to some in the government consider regional or even national lockdowns, should the situation worsen. As of writing, the FTSE 100 was down 3.38%.

Quote of the day – “Never, ever argue with your trading system

Michael Covel

Banking stocks fall after claims of “suspicious activity”

JP Morgan, HSBC and Deutsche Bank were some of the firms today included in a report which has alleged that these companies have facilitated the movement of “suspicious funds” over the last few decades.

The investigation was conducted predominantly by BuzzFeed and found that the banks’ compliance teams had flagged close to a total $2 trillion in suspicious transactions between 1999 and 2017.

As of writing, HSBC shares fell more than 6%, Deutsche Bank saw declines of more than 7%, and JPMorgan was down close to 4.4%.

The S&P 500 was the most impacted index on the news, dropping 2.03%.

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Eliman Dambell

Senior Market Analyst
edambell@tvmarkets.com