Gold slumped to a 16-month low last week but managed to recover and end the week with a 1.1 per cent gain bringing a halt to its five week losing streak. Despite the recovery, there is little encouragement for yjegold bulls as they face the next big challenge which is the Fed’s monetary policy decision in the coming week.
Gold has behaved more like a commodity rather than a safe haven or an inflation hedge in the last few weeks and this trend still remains intact. The general market sentiment is still US dollar versus riskier assets like commodities and equities.
The US dollar index has been on a rise since the start of the year but the pace of gains intensified since the start of this month as growth worries and Fed’s tightening expectations pushed investors towards the currency.
While there is no major development to highlight a change in the trend of US dollar, it is struggling to build on the momentum amid lack of fresh…
