After reaching its highest point in seven weeks just a fortnight ago, gold prices are now experiencing a significant reversal in fortunes.
Responding to the Federal Reserve’s decision to resume monetary tightening with a 25 basis point hike for July and a renewed commitment to combat inflation, the yellow metal suffered its steepest one-day decline since late June.
The European Central Bank’s quarter point rate hike on Thursday, along with hints of a potential pause by September, weighed on the market and contributed to a stronger dollar against the euro, further pressuring gold’s performance.
Closing at $1945.70 per ounce, down $24.40 or 1.2%, the front-month August gold contract on New York’s Comex witnessed its sharpest one-day fall since late May.
Just a mere two weeks prior, Comex gold had achieved a seven-week peak at $1,988.25, marking its highest level since late May when it had surpassed the $2,000 milestone.
The spot price of gold, which closely reflects physical bullion trades and garners attention from select traders more than futures, stood at $1,943.76 per ounce by 16:00 ET (20:00 GMT), indicating a 1.4% decline.
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