US gold futures They were down 0.8% to $1,722.90.
Gold is expected to fall to $1,600 by the end of the yearas Federal Reserve Chairman Jerome Powell’s determination to reduce inflation through tighter monetary policy will translate into higher real rates in the United States and a stronger dollar, said Giovanni Staunovo, UBS analyst.
Inflation has hit multi-decade highs in many parts of the world, forcing central banks to tighten monetary policy. Gold is highly sensitive to rising rates in the US, which increases the opportunity cost of holding non-interest bearing bullion.
“The Fed does not intend to do significant easing in the short term,” said Ilya Spivak, currency strategist at DailyFX. “Their focus is on inflation.”
Traders will look to the US private payroll report for more clues about the resilience of the US labor market.
In other precious metals, the silver Spot fell 2.5% to $18.03 an ounce, on track for its biggest monthly drop since September 2020; the platinum it was down 0.7% at $841.40; and the palladium it was down 0.4%, at $2,078.81.
Source: Ambito
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