Gold was not spared the series of losses received by global stock exchanges, and with the sharp decline of the dollar and sterling, in light of the historical rise of the dollar.
Gold prices fell to their lowest level in nearly 9 months, with the rise of the record dollar, and bets on increases in interest rates from the US Federal Reserve, which reduced the attractiveness of the precious metal.
Gold fell in spot transactions 0.6% to $ 1731.89 an ounce, and US gold futures fell 0.71% to $ 1730 an ounce.
Among other precious metals, silver fell 1.22% to $19.08 an ounce, and platinum fell 2.62% to $871.34, while palladium fell 0.91% to $2141.34.
Investors have recently preferred the dollar to gold, despite the risks of a recession, which has pushed the dollar index to its highest level in nearly 20 years, reducing appetite for gold, according to Forbes.
The dollar rose 1% once morest a basket of the main currency, bringing its index to 108.14, its strongest level since October 2002.
As well as preparing for interest rate increases, which raise the opportunity cost of holding the yellow metal, which does not generate returns.
In a previous speech, Federal Reserve Chairman Jerome Powell reiterated his “unconditional” commitment to reining in high inflation for four decades, by continuing to raise interest rates.
Although frequent increases in interest rates may come with the risk of high unemployment, and recession.
“Gold is under pressure while the dollar is making big gains and there are expectations of further rate hikes,” said Edward Moya, chief analyst at OANDA.
