Gold Falling Under Pressure Of Stronger US Dollar

Pressured by the rise of the US dollar, gold reversed its uptrend on Monday to record a drop to 1793 dollars per ounce, compared to the last closing, which recorded 1795 dollars per ounce.

The precious metal rose to its highest level throughout the first trading session of this week at 1802 dollars, compared to the lowest levels recorded at 1778 dollars.

On Monday, Goldman Sachs expected the Federal Reserve to effect four interest rate hikes in 2022, compared to its previous estimates, which indicated only three hikes.

The gold market is impacted by expectations of monetary tightening, interest rate hikes and reducing or halting asset purchases, when the International Monetary Fund urged emerging economies to prepare for monetary tightening, warning that the Fed’s hawkish moves towards raising interest rates may lead to capital outflows from those economies to the United States.

The dollar index, which measures the performance of the US currency against a basket of major currencies, rose to 95.95 points, compared to the last daily close, which recorded 95.72 points.