The Fed will contain inflation even with the risk of a recession.
As Federal Reserve governors confirmed their commitment to tightening monetary policy to combat inflation, gold traded at its lowest level in more than three weeks.
Bullion-backed ETF holdings fall for 10th week in a row
Thomas Barkin, president of the Richmond Federal Reserve Bank, stated that the central bank is committed to bringing inflation back to its 2% objective, notwithstanding the possibility of a US recession.
According to Bloomberg, high rates are putting pressure on zero-interest bullion, and investor demand has dwindled as ETFs have declined for ten straight weeks.
As we observe a shift from riskier assets to the safe-haven US dollar, gold may continue to be under pressure, according to Ravindra Rao, head of commodity research at Kotak Securities Ltd.
Spot gold dropped 0.2% to $1,742.96 per ounce, its lowest price since July 28. On Monday, it was trading at $1,744.40 in London.