Gold slipped lower at the opening of trading earlier in the week, weakened by the continuing strengthening of the US dollar and expectations for more interest rate hikes by the Federal Reserve (Fed).
In the Asian session, the yellow metal sank to its lowest level since April 2020 at $1,626 an ounce before rebounding slightly at $1,640, while gold futures traded at $1,647 an ounce.
The opening market session earlier in the week saw the US dollar surge to a new 20-year high and the US 10-year treasury yield hit a 12-year high.
This not only caused major currencies to fall, but also pushed lower priced metals.
The Fed's decision to raise rates by 75 basis points last week, and signals for further hikes continue to support the US dollar trade and dampen gold trade.
A stronger US manufacturing and services PMI data reading also added support for the USD to strengthen against its main rival.
Next in focus for gold investors will be speeches from several Fed policymakers this week, including Chairman Jerome Powell.
