Gold weakens as dollar strengthens
Gold prices fell sharply last week on a stronger dollar and rising uncertainty over U.S. monetary policy.
Spot gold was down 0.2% at $1,710 per ounce as at 22:15 ET (02:15GMT), while gold futures were down nearly 0.1% at $1,721 per ounce. Odds for both golds fell sharply last week amid growing concerns that the Federal Reserve will continue to raise interest rates rapidly in the near future.
Gold prices came under fresh pressure on Monday as U.S. Treasury yields rose and the dollar hit a fresh 20-year high. Data on Friday showed U.S. nonfarm payrolls rose more than expected in August, giving the Federal Reserve more time to keep interest rates high. With U.S. wage growth slowing and unemployment rising, traders see a 57% chance of a 75-basis point rate hike at the next Fed meeting, as markets are already nervous enough.
Gold prices have fallen sharply from their 2022 highs as the Federal Reserve begins to raise interest rates and boost output. Central banks are looking to fight inflation, which has hit its highest level in 40 years due to rising food and fuel prices. Recently, some central bank members said that interest rates may continue to rise until inflation approaches the central bank’s 2% target.
Today, gold prices ranged between $1725.00 and $1693.00 per ounce. I encourage investors to wait for a sell at $1725.00 and set profit at $1710.00 and risk at $1735.00/oz.