BENGALURU, India: Gold nudged up on Wednesday but was headed for its largest monthly decline since November 2016.
The downturn in bullion has come as the US dollar has been edging higher and as US stock indexes have been reaching new records, drawing some buying away from safe havens like gold.
Spot gold rose 0.3 percent to $1,767.01 per ounce by 12:10 p.m. EDT (1610 GMT), having touched its lowest since April 15 at $1,749.20 per ounce on Tuesday. US gold futures fell 0.2 percent to $1,766.40 per ounce.
Michael Matousek, head trader at US Global Investors, attributed gold’s slight uptick to some bargain buying in an “oversold” market with prices having retreated more than 8 percent from the highs hit in early June.
Gold prices have been weighed down by the Fed’s sudden hawkish shift.
“The dollar is rallying, the S&P 500 has consistently forged new record highs,” said Phillip Streible, chief market strategist at Blue Line Futures in Chicago.
The dollar index gained 0.4 percent, making gold more expensive for other currency holders.
Additionally, hawkish Fed officials have reaffirmed they are going to raise rates in 2023 as well as start tapering bond purchases. “These are all things gold investors hate,” Streible added.
