Gold falls as dollar

 

Gold falls as dollar strengthens and fears of Fed rate hike persist

Gold has become more expensive for customers holding other currencies, while the dollar has reversed previous losses by gaining 0.1% against its rivals.

According to the chief economist of AC Secur Securities, Clifford Bennett, " gold appears to be in the consolidation phase for a week or two before resuming its march towards $ 2,000.

The recovery in the US dollar and speculation about future interest rate hikes by the Federal Reserve to control excessive inflation contributed to the fall in gold prices on Monday.

After rising 1.6% last week, spot gold fell 0.4% to $1,794.78 per ounce at 03:52 GMT. US gold futures were down 0.3% at $1,810.

Some investors may even have to sell their investments to counterbalance the deterioration of their real estate portfolios”.

“About $ 1,785 is expected to serve as support for gold. "While a drop of up to $ 1,760 cannot be entirely ruled out, this would be an excellent long-term buying opportunity.

Thomas Barkin, president of the Richmond Fed Bank, said Friday that he wants to raise interest rates further to reduce inflation.

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The minutes of the Fed's monetary policy meeting, scheduled for Wednesday, will be closely watched by investors looking for further guidance on possible rate hikes.

In September, traders estimated a 44.5 percent chance of a 75 basis point rate increase by the Fed and a 57.5 percent chance of a 50 basis point increase.

Although rising US interest rates make unprofitable assets less attractive to bullion, gold is still a hedge against inflation.

According to ANZ analysts, " as inflationary pressures eased, Gold posted its fourth consecutive weekly increase. However, these same concerns could backfire in the long run".

The SDPR Gold Trust Fund, which is the largest equity fund, fell 0.15% to 995.97 tons on Friday, its lowest level since January, which is a good indicator of optimism.

Spot silver lost 1% to $ 20.61 an ounce, platinum fell 0.9% to $ 953.67 and palladium remained stable at $ 2,223.22.