Gold rose for the fourth consecutive week and scaled the pivotal $1800/oz level; however, the bulls lost confidence and the metal registered its first decline in five weeks. Gold ended the week with a sharp 3 per cent decline.
The trend in the US dollar has been one of the key price determining factors for gold and this relationship remains intact as market players try to assess Fed’s monetary policy stance.
The US dollar index rose sharply last week and tested a 1-month high. The US dollar index edged up amid ongoing debate about the Fed’s monetary policy stance and amid increased safe-haven buying on the back of geopolitical tensions and growth worries.
The Fed has raised interest rates aggressively since March to get inflation under control, however, the central bank has now entered an uncertain phase as some improvement in the inflation situation and increasing pressure on economic activity has fueled debate about future…
