Gold market volatility slumps to lowest since start of pandemic

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Gold markets haven’t been this calm since the onset of the Covid-19 pandemic, thanks to a deadlock between buyers and sellers that’s showing no signs of breaking. Six-month historical gold volatility slumped to the lowest since February 2020 on Friday. The measure has plunged due to bullion largely staying confined to a range between $1 900 and $2 000 an ounce since mid-May.

Gold markets haven’t been this calm since the onset of the Covid-19 pandemic, thanks to a deadlock between buyers and sellers that’s showing no signs of breaking.

That’s despite the dollar and inflation-adjusted Treasury yields surging over the same period, which would usually put bullion under major pressure. Gold buyers have supported the metal every time it slid to around $1 900, essentially putting a floor under the market.

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