Spot gold price retreats to the threshold of 4,200 dollars
While spot gold prices pulled back to the threshold of 4,200 dollars under selling pressure, investors focused on critical economic data.
The ounce price of gold entered the new week under heavy selling pressure, pulling back to the threshold of 4,200 dollars. The Fed's tightening policies, rising bond yields, and a strengthening dollar are putting pressure on the precious metal.
Selling Pressure in the Markets
The ounce price of gold is trading near the 4,200-dollar threshold in the early transactions of the new week. Pulling back toward the 4,250-dollar region in the second half of last week, gold continues to be affected by strong selling pressure in the market.
The Fed's Interest Rate Policies
At the root of the pressure on gold are the steps taken by the US Federal Reserve. While the bank raised its policy interest rate to the 3.75-4 percent range, a large majority of policymakers anticipate at least one more rate hike by the end of the year.
Bond Yield and Dollar Impact
The 10-year US Treasury yield approaching multi-year highs and the rise in the dollar index diminish the appeal of gold. Experts point out that bond yields and the dollar need to calm down for a lasting recovery.
Gram Gold and Exchange Rate Dynamics
For investors in Turkey, the price of gram gold is affected by both ounce gold movements and the dollar exchange rate. Declines in the ounce price can show varying reflections depending on the exchange rate effect.