Gold fell for the sixth straight session on Monday, trading at $1,831 an ounce, its lowest level since March 10.
At 10:30 a.m., an ounce of gold fell 0.75% to $1,831.25, down nearly 10% from May’s highs of $2,050.28, according to Bloomberg.
In August 2020, gold hit an all-time high of $2,075.47 per ounce.
According to experts quoted by Efe, gold is on a downward trajectory due to the strength shown by the dollar, one of the safe-haven assets with which it maintains an inverse correlation.
Analysts add that rising sovereign debt rates, which hit a decade high last week, are also weighing on the price of gold.
Analysts at Banca March recall that gold fell by 4.7% in September. “A scenario of higher rates over a longer period of time weighs on the precious metal,” they said.
Speaking to Efe, Diego Morin, an analyst at IG, attributed the fall in gold prices to an “accelerated movement” in which demand was reduced in search of “more attractive” prices.
Morin believes the gold price could continue to fall to around $1,800 an ounce unless the market reverses its downward trend to $1,850 and then consolidates from there.
Author: Lusa
Source: CM Jornal
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