The price of gold again fell below the key support of $ 1800 per ounce and reached the level of 1795.
The precious metal extended its losses on Tuesday and is on track for the biggest intraday drop in almost a month, as rising demand for the dollar and strengthening yields weakened the attractiveness of safe assets. Meanwhile, the US currency rose by 0.5% against its competitors, which made gold more expensive for holders of other currencies. There is some pullback in the precious metals market, while the dollar is likely to continue to grow and put further pressure on assets. On Friday, gold rose to a four-week high after a weak US employment report reinforced rumors that the Fed may push back the reduction in bond purchases. Gold is widely considered a means of protection against inflation and currency depreciation caused by large-scale stimulus measures. Further reducing the attractiveness of bullion, the benchmark ten-year yield also rose to a more than one-week high, increasing the opportunity costs of owning an interest-free precious metal.
The forecast assumes a further decline in the price of gold to the levels of 1700, 1785 and 1780 dollars per ounce.