Gold prices continued to weaken on Wednesday as the world’s major central banks signaled to act more aggressively causing the yellow metal to fail to take full advantage of the greenback dollar’s trading slump.
At the opening of the European session, spot gold traded lower at $ 1,707 per ounce while gold futures declined to $ 1,704 per ounce.
The US dollar continued to move away from the 20 -year high it reached last week, seeing the dollar index weaken to a one -week low against major currencies.
However, gold failed to find support from the decline as major central banks prepared to raise rates higher in an effort to curb inflation.
The European Central Bank (ECB) is the main focus of investors at the moment which reportedly may consider raising interest rates by 50 basis points from the 25 points initially discussed.
Moreover, the Bank of England (BOE) also did not rule out the possibility of a half -basis point hike by saying the proposal would be considered at its August meeting.
The latest data showed UK inflation rose higher to 9.4% in June.
