Gold falls towards $1,700

The fall of the safe haven gold continued to head towards $1700 despite the lull in the dollar’s rallies that are still hovering near the 109 levels, but the crazy hikes in the two-year bond yields continue to raise concerns about recession fears.

On the other hand, US bonds did not miss the opportunity to fluctuate risk appetite and traders’ aversion to risky assets to record highs, while the inversion of the yield curve continues to raise fears of a recession.

Gold prices fell at the end of trading on Wednesday, continuing to decline for the fifth month in a row, amid expectations of continued rise in US interest rates that support the rise of the dollar.

Gold fell during August trading by 3.1%, or the equivalent of $55.6, while yesterday it fell by 0.8%, or the equivalent of $10.10, to reach $1710.70 an ounce.

Cleveland Federal Reserve Bank President Loretta Mester said on Tuesday that she was not anticipating the Fed to cut rates next year, as reported by Reuters.

“We need to raise the policy rate to somewhat above 4% by early next year; hold it there.”
“Real rates will need to move into positive territory; remain there for some time.”
“Bringing down inflation will be painful in the near term; requires a lot of fortitude.”
“I see the unemployment rate rising somewhat above 4% by the end of next year.”