Gold Hovers 9-Month Low on Dollar Strength

gold prices

Gold: Traded around $1,730 an ounce on Tuesday, hovering its lowest levels in nine months, as investors opted for the dollar as a hedge against surging inflation and recession risks over the metal.

Expectations that the Federal Reserve will continue to aggressively raise interest rates also pressured gold, as a stronger-than-expected jobs report and upcoming US inflation data could bolster the central bank’s tightening plans.

Atlanta Fed Bank President Raphael Bostic said Monday that the lack of month-to-month improvement in the pace of price increases warrants another 75 basis point rate hikes later this month.

Meanwhile, Kansas City Fed Bank President Esther George, a dissenter in last month’s 75 bps increase, warned against abrupt changes in rates that could stress the economy and financial markets.