WASHINGTON (dpa-AFX) - Gold prices fell sharply on Wednesday after rallying over the past week on the back of a weaker U.S. dollar and lower U.S. interest-rate expectations.
Spot gold fell 1.2 percent to $1,706.49 per ounce, while U.S. gold futures were down 0.9 percent at $1,714.80.
Prices were moving lower for the first time in seven days, giving up three-week highs registered the previous day.
The downturn comes as yields recovered and the dollar resumed its ascent ahead of key U.S. private sector and services data for September.
There is much uncertainty over whether economic circumstances have changed enough to prompt a change in aggressive monetary policy actions.
San Francisco Federal Reserve Bank President Mary Daly said on Tuesday the U.S. central bank needs to deliver 'further rate hikes' and then hold those restrictive policies in place until it's 'truly done' on inflation.
Also, hawkish commentary from the Reserve Bank of New Zealand (RBNZ) suggested that fighting inflation is still a priority for many central banks.
The RBNZ today delivered a 50-bps rate hike for the fifth consecutive meeting and reiterated its resolve to break inflation back down to 2 percent.
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