Gold: lost further ground to $1,735 an ounce on Friday, the lowest since September 2021 as the dollar hit new 20-year highs on expectations of the Federal Reserve will maintain its aggressive monetary policy stance after a stronger-than-expected jobs report.
The yellow metal is down more than 4% this week, the fourth consecutive week of losses. In the latest Federal Reserve commentary, two of the most hawkish policymakers, Christopher Waller and James Bullard, backed raising interest rates by another 75 basis points this month to curb red-hot inflation.
The Fed’s aggressive stance against inflation raised fears of a slowdown in the world’s largest economy, prompting a decline in commodity prices.
The European Central Bank is also set to start raising borrowing costs this month and is expected to accelerate its policy tightening for the rest of the third quarter if inflation remains high, with investors projecting the central bank’s deposit rate to move to positive territory by October.