Around 0:46 a.m. on Aug. 31, spot gold prices fell 0.8 percent to $1,723.65 an ounce after hitting a one-month low of $1,719.56 an ounce on Aug. 29.
[World gold prices go down while US bond yields strengthen]
At a conference of the world’s top central banks in Jackson Hole, Wyoming, last week, the Fed and the European Central Bank issued a strong signal, pledging efforts to curb high inflation even if economic growth suffers. Most traders now expect the Fed to raise rates by 75 basis points in September 2022.
Meger said the gold market will see some money flowing in if the economy starts to slow.
The dollar index was stable after rising 0.3% earlier. The strengthening dollar makes gold more expensive for holders of other currencies.
In other precious metals markets, spot silver fell 1.9% to $18.39 an ounce, platinum fell 1.9% to $847.50 an ounce, and palladium fell 2.9% to $2,084.69 an ounce.
