Gold Price falls on the stronger US Dollar

Gold price has become at the mercy of Federal Reserve’s tightening as the US Dollar extended its gains. The US ISM Services index remained at expansionary territory, but it’s decelerating.

Gold price falls after the hawkish remarks by Fed’s Jerome Powell, who said that the “ultimate level of rates would be higher than previously expected”. These remarks have triggered the latest US Treasury yields’ jump, which reinforced the dollar and deterred gold.

US data from denoted that business activity continues to expand while the labour market remains tight. At the time of writing, the Gold Index (XAUUSD) is trading around $1630, down by %0.32.