Gold Price Tumbles Below 4,400 as US Dollar Strength Weighs In
The world gold price has lost momentum and is under pressure as it falls below the 4,400 USD mark. On September 21, spot gold price decreased by 0.65% to 4,349.81 USD/ounce, while December gold futures price dropped by 0.86% to 4,386.76 USD/ounce. This decline follows a week of gains for gold prices, which increased by 0.36%.
The strong US dollar is weighing on gold prices as it makes the precious metal more expensive for buyers holding other currencies. The Fed's decision to raise interest rates and signal further tightening has also reduced gold's attractiveness due to its lack of income-generating potential.
However, cooling oil prices have helped reduce concerns about inflationary pressure, supporting gold prices. The market is monitoring the resistance zone of 4,400-4,440 USD/ounce, where a price crossing could extend upward momentum. In India, gold demand decreased during the week as buyers waited for lower prices, while investment demand in China remained stable.