Gold takes a backseat to Treasuries as safe haven from Turkey's currency crisis
- Gold prices were down 1.3% on Monday.
- Analysts say a currency crisis in Turkey is raising contagion risks.
- Watch gold trade in real time here.
Gold prices hit their lowest level in nearly a year and a half Monday as investors turned to US Treasuries in the face of a currency crisis in Turkey that analysts say could spill across borders.
Gold dipped below $1,200 an ounce Monday morning to its weakest point since early 2017. It was trading down 1.3% at $1,196.27 an ounce around 12:15 p.m. ET. Silver also took a hit, trading lower by 1.5% to $15.05 an ounce. It was trading at its lowest level since April 2016.
Investors have recently favored US government bonds as a safe-haven asset, meaning they had to purchase dollars. A stronger greenback makes dollar-denominated assets like gold more expensive for holders of other currencies.
A sharp currency sell-off in Turkey, which holds large amounts of foreign debt, has raised contagion risks and put global markets on edge. The Turkish lira lost more than a fifth of its value against the dollar last week and continued to weaken on Monday.
Gold is down 5.4% this year.
