Gold's longest monthly losing streak in 50 years

Gold is set to close its seventh straight month of losses, if true, it would be its longest losing streak since the late 1960s. Expectations of another 75 basis point hike by the Fed continue to weigh on the precious metal. Gold is set to suffer its seventh straight monthly loss this week amid expectations of another major Fed rate hike, which would be its longest losing streak since the late 1960s. Spot gold has lost 10 percent of its value since it started the year and 20 percent since its peak in March following Russia’s invasion of Ukraine. The precious metal has declined every month since then and is set for a 1 percent loss in October. The Fed’s aggressive rate hikes to curb high inflation have driven investors into the dollar, strengthening the U.S. currency while causing spot gold to fall. A strong dollar and higher bond yields have a negative impact on gold, which does not earn interest and is priced in dollars. Spot gold fell below $1,650 last week after 10-year U.S. Treasury yields rose on Friday and U.S. economic data paved the way for a 75 basis point increase. Key U.S. inflation accelerated in September, while consumer spending remained resilient, suggesting broad price pressures and solid demand. Economists surveyed by Bloomberg expect Fed officials to maintain their hawkish stance at this week’s meeting, paving the way for a big hike in policy rates to reach 5% by March 2023. That could trigger a global recession that includes the U.S.