Gold trading remained hovering around an 11 -month low as the U.S. dollar tried to regain strength as investors reduced expectations for a 100 basis point hike from the Federal Reserve (Fed).
In the Asian session, spot gold traded at $ 1,706 per ounce while gold futures were down $ 1,704 per ounce.
The yellow metal posted gains at the start of trading earlier in the week, capitalizing on the US dollar’s recorded depreciation following several statements by Fed policymakers on interest rates.
Atlanta Fed President Raphael Bostic and St. Louis Fed James Bullard signaled Friday that they would prefer to raise interest rates by 75 basis mats for at a policy meeting next week.
This in turn defied expectations sparked by the market after seeing US inflation data continue to hit a 40 -year high in June.
Even so, the U.S. dollar is trying to regain its strength as a safe-haven amid renewed market concerns over the spread of Covid-19 in China and the energy crisis facing Europe.
Overall, no major movements displayed the golden yellow metal causing it to continue hovering at its lowest level almost stau of the year.
