⁍ The dollar jumped 0.6% to a more than one-week high against a basket of other major currencies.

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⁍ Despite recent volatility, gold, considered a hedge against inflation and currency debasement, is still up about 25% so far this year.

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– The dollar surged to a more-than-one-week high against a basket of major currencies on Wednesday as investors sought the safety of the US currency in the run-up to the US presidential election. The dollar index, which tracks the greenback’s strength against a variety of other currencies, was up 0.6% at a more than one-week high against a basket of other major currencies, with the prospect of fresh European lockdowns weighing heavily on the euro and accelerating a tumble in equities, reports Reuters. “The metals were so dependent on more stimulus at this point and the bear camp is fully in control right here,” said Bob Haberkorn, senior market strategist at RJO Futures. “Overall, the gold market is lower on a strengthening dollar due to the lack of stimulus measures and risk-off mentality heading into this election.” Gold fell as much as 2% and silver nearly 6% on Wednesday as investors flocked to the dollar in the absence of signs of any imminent US fiscal stimulus measures to ease the economic blow from the COVID-19 pandemic. Spot gold hit its lowest since Sept. 28 at $1,869.21 per ounce before recovering to $1,881.41 by 12:01pm EDT. US gold futures fell 1.5% to $1,882.70. Silver slumped as far as $23, its lowest since Oct. 7. “All of those are responsible for the pick up in volatility and the downside in metals prices,” said David Meger, director of metals trading at High Ridge Futures.