Gold falls below $1,700 under pressure from sharp interest rate hike bets

Gold prices fell briefly below the $1,700 key level on Thursday for the first time in six weeks as major central banks tightened monetary policy to combat inflation, curbing demand for the non-yielding yellow metal.

Spot gold fell 0.4 percent to $1,704.70 an ounce by 0917 GMT, after touching $1,699.30 earlier, its lowest since July 21.

And US gold futures fell 0.6 percent to $ 1716.60.

Gold prices have come under severe pressure as inflation, which has reached the highest levels in decades, has forced central banks around the world to tighten monetary policy.

The price of gold has lost more than $350 since it rose to more than $2,000 in early March, and recorded the fifth consecutive monthly decline in August, in the longest series of monthly losses since 2018.

The dollar also remained near a two-decade peak, which added to the pressure on gold as it increased the opportunity cost of holders of other currencies.

As for other precious metals, silver fell 1.3 percent in spot transactions to $ 17.74 an ounce, hitting its lowest level in more than two years.

Platinum fell 0.7 percent to $840.58, while palladium rose 0.7 percent to $2,098.53.