Strong dollar pressure on gold

Gold extended its decline for a third day as the dollar strengthened ahead of economic data that investors are awaiting for more clues about the Fed’s interest rate hike path. Gold fell for a third straight day as the dollar strengthened ahead of economic data that could provide more clues about the outlook for the Fed’s interest rate hike program. The precious metal rallied in the past two months after months of decline due to the monetary tightening implemented after the pandemic, hitting an 8-month high on Friday. An ounce of gold tested below $1,900 in the spot market. Gram gold hit TL 1,145. Investors will be following US data, including retail sales and PPI, to be released on Wednesday for more indicators about the Fed’s monetary policy tightening path in the coming period. Commtrendz Risk Management Servives Director Gnanasekar Thiagarajan stated that the precious metal could test $1,880-$1,885 levels during the day and said, “The Bank of Japan maintained its low interest rate, defying market expectations that it would phase out its massive stimulus program amid rising inflationary pressure. Risk aversion is among the main reasons for the strengthening dollar, which could put pressure on gold prices.”