Gold Prices Fall To Lowest Levels In Over A Month

(RTTNews) - Extending the downward trend seen over the past few sessions, the price of gold showed another move to the downside during trading on Wednesday.

After falling $13.40 or 0.8 percent to $1,736.30 an ounce on Tuesday, gold for December delivery slipped $10.10 or 0.6 percent to $1,726.20 an ounce.

With the continued decrease on the day, gold for December delivery dropped to its lowest levels in over a month.

The continued weakness among gold prices came even as the value of the U.S. dollar continued to show a lack of direction, with the U.S. dollar index edging down by less than a tenth of a percent.

Worries about higher interest rates continued to weigh on the price of gold following some hawkish comments from Federal Reserve officials.

In remarks earlier this morning, Cleveland Federal Reserve President Loretta Mester said she expects the Fed to raise interest rates above 4 percent by early next year.

Mester also said she does not anticipate the Fed cutting interest rates in 2023, with the central bank likely to keep rates at an elevated level in an effort to combat inflation.

"Gold is struggling as inflationary pressures will keep all the major central banks with an aggressive inflation tightening stance," said Edward Moya, senior market analyst at OANDA. "Rising global bond yields is kryptonite for gold and that trend might last a little while longer."

He added, "Eventually, we will see global recessionary concerns cap tightening cycles and that should be what is needed for gold bulls to return."