Gold fell to its lowest levels in seven months

Gold prices fell to $1,830 per ounce during trading on Monday, reaching their lowest levels in seven months due to pressure resulting from the strong dollar and high Treasury yields, as well as today’s expected speech by Jerome Powell.

Gold’s decline today is the worst in two years, incurring monthly losses of 5%. On a weekly basis, its losses exceeded 3.50%.

Investors were concerned about the possibility of continuing high-interest rates for a long period in the United States after the Federal Reserve took a conservative pause during its monetary policy meeting last September. In particular, high-interest rates increase the opportunity cost of holding an unprofitable precious metal, reducing its attractiveness.

Meanwhile, data published last week showed that the Federal Reserve’s preferred core personal consumption expenditures price index rose less than expected in August, while the US economy maintained a strong 2.1% growth pace in the second quarter. Investors are now looking to this week’s US jobs numbers for further guidance.

In terms of technical analysis, gold is expected to touch the level of $1,810 per ounce. The chief technical analyst at NoorCapital also believes that gold prices are awaiting more losses, expected to record $1,800 per ounce, with attention being paid to the speech of the Federal Reserve Governor – Jerome Powell – later in the day, as his statements would give indications to the markets on the future course of American interest.