Trading at three-month lows, the precious metal appeared headed for its largest weekly decline since early February. Gold prices were under pressure due to Federal Reserve Chair Jerome Powell’s prediction of a 50 basis point rate increase this year.
The price of gold fell by almost 1% over night, marking the fourth day in a row that prices have fallen.
The price of the precious metal was at three-month lows, and it appeared that it would have its worst weekly decline since early February. Gold prices were under pressure as a result of Federal Reserve Chair Jerome Powell’s prediction of a rate increase of 50 basis points this year.
The Bank of England raised interest rates by 50 basis points, which further shocked the market for precious metals. Rate increases from nations including Switzerland, Norway, and Turkey also contributed to the drop in gold prices.
Following the breach of the $1920 support level, chartists who study price trends predict potential support for gold at the $1880 level. This expresses a pessimistic outlook and raises the possibility that the negative trend will persist.
When gold returned to India, the price per gramme dropped to Rs 58,000. Using reference rates published by the Indian Bullion and Jewellers Association (IBJA), the price of 24 karat gold was Rs 58,654 and the price of 22 karat gold was Rs 53,727 (without Goods and Services Tax).