Gold prices touched more than one-year low on Thursday as the prospect of aggressive policy tightening by major central banks weighed on the non-interest-bearing metal’s appeal, while investors awaited European Central Bank’s policy announcement. Spot gold fell 0.8% to $1,682.49 per ounce by 1106 GMT, hitting its lowest level since end-March 2021. US gold futures fell 1.2% to $1,680.10. The ECB was earlier signalling a 25-basis-point interest rate hike at its policy meet on Thursday, however, a bigger-than-flagged move is also seen as likely amid soaring inflation. “Gold remains as sensitive as ever to central bank hikes, and expect it to take another knock if the ECB raises rates by 50 bps as concerns morph into reality,” City Index senior market analyst Matt Simpson said.
Published in The Express Tribune, July 22nd, 2022.
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