Gold Prices Weakened

Gold Prices Weakened

Gold Prices Weakened

Gold Prices Weakened

Gold prices weakened to around $1,660 an ounce on Thursday, sliding back towards the lowest levels in over two years, weighed down by a rallying dollar as the Federal Reserve delivered its third straight 75 basis point rate hike and signaled further tightening ahead to bring down inflation. The first resistance will be $1675 on a rise and first support will be $1658 on a decline.

Gold prices weakened to around $1,660 an ounce on Thursday, sliding back towards the lowest levels in over two years, weighed down by a rallying dollar as the Federal Reserve delivered its third straight 75 basis point rate hike and signaled further tightening ahead to bring down inflation. Other central banks from Europe to Asia have also been raising interest rates this week, with European Central Bank President Christine Lagarde saying that the ECB might need to increase rates to restrictive levels to stem demand and combat surging inflation. Higher interest rates raise the opportunity cost of holding non-yielding bullion, denting its appeal. Gold also lost its shine as a store of value in times of economic uncertainties as the US’ relative economic strength and the Fed’s aggressive stance against inflation lifted the dollar at the expense of other safe-haven assets.

GOLD – XAUUSD 

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21 September 2022 14:03

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