The gold -priced metal slipped lower in early week trading with prices falling around $ 1,730 an ounce as the market headed into the opening of the European session.
This was driven by investor demand for the safe-haven currency of the US dollar and bonds after Turkish President Tayyip Erdogan’s surprise decision sparked market uncertainty by sacking his central bank governor.
Erdogan fired the central bank governor just two days after a significant increase in interest rates aimed at curbing a nearly 16% rise in inflation and supporting the lira.
Concerns that developments in Turkey will threaten other financial markets have given a boost to the U.S. dollar, making gold expensive for investors holding other currencies.
The dollar index that measures the strength of the greenback dollar against a basket of major currencies traded up at 92.01.
Meanwhile, the market focus is now targeted at Federal Reserve (Fed) Chairman Jerome Powell who will speak at a virtual panel discussion on innovation organized by the Bank for International Settlements tonight.
