At $1,765, gold traded the lowest since December 2021. Compared to the previous day, the losses amounted to around 43 dollars. The price of gold is being weighed down primarily by the strong dollar. The currency of the United States is currently benefiting significantly from the great uncertainty on the financial markets.
It is feared that the many negative factors such as the Ukraine war, delivery bottlenecks, high inflation and rising key interest rates could plunge the global economy into recession. The dollar is increasingly targeted as a reserve currency in uncertain times.
Commodities like gold are mostly traded in dollars. Therefore, a rising dollar rate increases the calculated purchase price for interested parties outside the dollar area. This weighs on demand and ultimately on the price of gold.
Source: Nachrichten
