Gold nosedives to three-week lows

Gold has been plagued by accelerating decline. On Wednesday, the precious material also hit fresh three-week lows below $1,630. Gold is trading at $1,628.60 per ounce at the time of writing.

Meanwhile, the USD rallies on Fed officials signaling further tightening and soaring US yields. Gold has nosedived nearly 1.5% so far today on the back of a strong USD recovery as risk appetite diminished.

After the moderate decline of the previous two days, the dollar is experiencing a robust recovery on Wednesday. The USD has bounced back amid a more negative market sentiment and the rebound on US Treasury bond yields. The benchmark 10-year bond yield has jumped to 4.12%, its highest level since the 2007 crisis.

Investors shifted focus to the Fed’s monetary policy meeting scheduled for November 1 and 2. With the market anticipating another 75-basis point hike, the aggressive tightening stance adopted by the US central bank is further supporting the US dollar.

The US Dollar Index bounced up from levels right below 112.912 and has rallied beyond 1% on the day, returning around the 113.00 area at the time of writing.