The_King Posted August 29, 2022 Share Posted August 29, 2022 (Reuters) - Gold prices fell to a one-month low on Monday, as U.S. Federal Reserve Chair Jerome Powell's stance to continue with aggressive monetary policy to bring down inflation dented the zero-yielding metal's appeal and boosted the dollar. Spot gold had shed 0.7% to $1,724.88 per ounce by 0550 GMT. Prices earlier fell to $1,720.55, their lowest since July 27. U.S. gold futures dropped 0.8% to $1,736.40 per ounce. The dollar index scaled a 20-year high, making greenback-priced bullion more expensive for buyers holding other currencies. [USD/] Gold's momentum has turned lower and while at some point there will be a safe-haven flow, investors are currently focusing on interest rates remaining high, said Matt Simpson, a senior market analyst at City Index. In a speech kicking off the Jackson Hole central banking conference in Wyoming on Friday, Powell said the Fed would raise rates as high as needed and would keep them there "for some time" to bring down inflation. He also warned of "some pain" to households and businesses. Echoing the Fed chief's stance, European Central Bank board member Isabel Schnabel said central banks must act forcefully to combat inflation, even if that drags their economies into a recession. While gold is often considered a safe haven during financial uncertainties, it is highly sensitive to rising U.S. interest rates, which increase the opportunity cost of holding non-yielding bullion while boosting the dollar. "Gold is probably heading towards $1,700 and has room to go to $1,680. You can get some buyers stepping in around the $1,680 level to support the market and back up to $1,750," Simpson added. Spot silver fell 1.4% to $18.61 per ounce, platinum dipped 1% to $854.66 and palladium was flat at $2,110.39. Link to comment Share on other sites More sharing options...
Bigbird Posted August 29, 2022 Share Posted August 29, 2022 "Where got" lowest in 1 month! https://www.lbma.org.uk/prices-and-data/precious-metal-prices#/ Lowest was 27th Jul within this month which i missed! But lowest in 2022 so far was on 14th Jul!! 1 Link to comment Share on other sites More sharing options...
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