Gold fell for the fifth day in a row and hit a three-month low

He gold closed its fifth consecutive day down this Thursday, June 22, after the Federal Reserve Chairman from United States, Jerome Powellwill reiterate that more interest rate hikes are likely to control inflation.

He Spot gold was down 0.9% to $1,914.20 the ounce to add your fifth consecutive daily decline, the first time that a negative streak of this nature has been chained in four months. The gold futures in the United States fell 1.1% to $1,923.70.

Gold briefly pared some losses after data showed that the US jobless claims held steady at a 20-month high last week, which could signal a weakening job market in the face of the Fed’s aggressive rate hikes.

The dollar rebounded from the minimum of more than a month reached earlier, what made gold less attractivewhile Treasury yields also rose.

Although gold is considered a hedge against inflationnails High rates to curb price pressures weigh on the attractiveness of this assetwhich does not accrue interest.

Powell’s definitions that changed the market landscape

Powell told lawmakers on Capitol Hill on Wednesday that further rate hikes are “a pretty good guess” of where the Fed is headed. Atlanta Fed President Raphael Bostic, however, said the Fed could having to wait beyond their July meeting to decide on further increases. The dollar touched lows of more than a month.

Markets see a 74% chance of a rate hike in July, with cuts likely only after 2024, according to CME’s Fedwatch tool, as yields on benchmark 10-year US Treasuries neared highs of session.

Although gold is seen as a hedge against inflation, high rates to curb price pressures weigh on the attractiveness of this non-interest-bearing asset.

In other precious metals, the silver fell 0.9% to $22.43 an ounce, while the platinum it was down 2% at $922.44. Both hit multi-month lows. Meanwhile, the palladium it sank 4.8% to $1,282.39, one floor since May 2019.