“There is continued pressure on gold as (Federal Reserve Chairman Jerome) Powell’s comments last week strengthened expectations of a more aggressive Fed. Gold, being an asset that does not generate interest, will have more competitionsaid David Meger, director of metals trading at High Crest Futures.
At the Jackson Hole central banking conference in Wyoming last week, The Fed and the ECB have pledged to do everything possible to control high inflation, that includes continuing to aggressively raise interest rates even if economic growth suffers.
Most traders expect a 75 basis point Fed interest rate hike in September. However, “gold will eventually see some safe haven flows at some point if the economy starts to slow,” Meger added.
The dollar index was flat after advancing 0.3% earlier. A stronger dollar makes bullion more expensive for foreign buyers.
In other precious metals, spot silver fell 1.9% to $18.39 an ounce; platinum also lost 1.9% to $847.50; and palladium shed 2.9% to $2,084.69.
Source: Ambito
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