7/1/2022 10:25:23 AM GMT
By: AnalysisWatch
Gold Price was dragged below the $1,800 mark at the end of the week, its lowest level since May 16.
Aggressive Fed rate hike bets and a goodish pickup in the USD demand exerted some pressure.
Recession fears and the risk-off mood did little to lend any support to the safe-haven XAUUSD.
Gold Price prolonged this week's bearish trend and witnessed heavy follow-through selling on Friday,
marking the fifth successive day of a negative move. The downward trajectory extended through the early part of the European session and dragged spot prices to the lowest level since May 16, around the $1,792 region in the last hour.
Flows were driven away from gold by the prospects for more aggressive rate hikes by the US central bank.
These were reaffirmed by Fed Chair Jerome Powell's remarks on Wednesday, which said that the US economy is well-positioned to handle tighter policy. Speaking at the ECB Forum in Sintra, Powell added that the Fed remains focused on getting inflation under control and the market pricing is pretty close to the dot plot. Apart from this, broad-based US dollar strength further exerted downward pressure on the dollar-denominated commodity.