Gold below $1,700 on sharp interest rate hike bets

Gold prices fell on Thursday to below the key $1,700 level for a short period for the first time in six weeks, as major central banks insisted on tightening monetary policy to combat inflation, curbing demand for the non-yielding yellow metal.

And according to “Reuters”, spot gold fell 0.4% to $1704.70 an ounce (an ounce) by 0917 GMT, after touching $ 1699.30 earlier, the lowest level since July 21. US gold futures fell 0.6% to $ 1716.60, Reuters reported.

Gold prices came under severe pressure as inflation, which reached the highest levels in decades, forced central banks around the world to tighten monetary policy.

The price of gold has lost more than $350 since it rose to more than two thousand dollars in early March, and recorded the fifth consecutive monthly decline in August, in the longest series of monthly losses since 2018.

The dollar also remained near the peak of two decades, which added to the pressure on gold, as this increased the opportunity cost of holders of other currencies.

As for other precious metals, silver fell 1.3% in spot transactions to $ 17.74 an ounce, hitting its lowest level in more than two years.