Gold Falls to a Week Low During Strong Dollar and Fed Rate Increase

Gold Continues to Retrace lower price levels for the 4th straight day today (Monday). The downside path stays unaltered through the 1st half of the European trading period. And this pulls the spot price to a week’s depth near the $1,678 area.

Anticipations that the Federal Reserve will hold on to its violent tightening policy trajectory propelled the Dollar to one and a half week height. Consequently, this burdens the  Gold versus Dollar pair (XAU/USD). The fat United States monthly employment statement which was published on Friday portrays the quick recovering economy, and provides the United States Apex bank the room to continue increasing interest rates to fight inflation.

Additionally Details Concerning Gold Versus Dollar Price Movement
Even now the market is now weighing in a much bigger probability of the 4th straight supersize 75 basis points rate hike, come the next FOMC policy meeting during next month (November).  This stays in support of the high United States Treasury bond yields and as well helps to repel flows from Gold. Therefore, attention in the market is on the FOMC report and the United States Inflation data.

Investors will then search for new clues concerning the Federal Reserve’s coming rate hike trajectory. This will play an important part in influencing the United States Dollar, and as well give new bearing to Gold price. Besides this, buyers and sellers will gather clues from the United States’ monthly Retail Sales data. For now, the ruling risk-off mood could restrict losses for the Gold versus Dollar pair amidst vacation-reducing liquidity.

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