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The gold market is certainly getting the new trading week off to a lousy start as the yellow metal is down nearly $70 per ounce in mid-a.m. trade. Other markets are not holding up much better, as the key stock indices including the Dow Jones Industrial Average and the tech-heavy Nasdaq are also seeing declines of around 2% or more in early action.

The U.S. markets are reportedly reacting to a rise in European cases of COVID-19 and have joined the global equity sell-off to start the week. A lack of fresh stimulus measures from Washington is also playing a role as well as reports of major global banks continuing to do business with individuals suspected of wrongdoing.

The concern over European viral cases has fueled speculation that further, restrictive measures may be introduced to stem the spread of the virus. Any closures of bars and restaurants, public meeting places and other businesses could cause the global recovery to sputter at a time when central banks are already pulling out all the stops to keep the economy going.

In other news, U.S. Supreme Court Justice Ruth Bader Ginsburg passed away over the weekend, and that has led to an increasingly hostile batter over her successor. The need to name a successor to Ginsburg will almost certainly complicate an already bitter presidential election battle that could also muddy the waters for any further stimulus measures to come out of Washington any time soon.

The concern over the viral pandemic today has given the U.S. Dollar Index a boost, and that dollar strength is likely playing a major role on gold’s downside today. The yellow metal is trading just under the $1900 mark at $1897. The bulls will attempt to hold prices at $1900 or higher before the market closes today. If they are unable to do so and the metal closes below the $1900 level, it could potentially lead to further selling tomorrow and in the sessions ahead that could test the will of the gold bulls. Today’s sell-off could, however, prove to be an excellent opportunity to buy the dip.

Nothing has changed from a fundamental standpoint between last week and today. The markets appear to be suffering from a case of the “sell everythings” today that could see an ugly close to stocks at 4pm EST this afternoon.

With 43 days left until the U.S. Presidential election, investors taking some money off the table should come as no surprise. The election is likely to become a major issue for markets in the days and weeks ahead. If the election results are contested, it could wreak havoc across financial markets while potentially fueling investor interest in perceived safe haven assets such as gold. Rising viral numbers, rising hard Brexit risks and the uncertainty surrounding the presidential election could all play a role in the shift to a “risk-off” mentality in the weeks ahead, and that mindset could remain in place through the election until a winner is officially declared.