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The yellow metal has come under significant selling pressure this week with the market falling 5.5% as of writing.
Gold is now down more than 10% from the 2073.48 highs posted last month.
The main driver behind the acceleration in gold’s decline is the recovery underway in the US dollar. The greenback has seen firm buying over the week as safe-haven flows move into the dollar and away from gold.
The dollar has also been supported by better US data across the week, with the flash manufacturing PMI showing a firm rise.
The Fed recently announced a shift in its inflation targeting strategy whereby it will now allow inflation to run hotter than its 2% target.
However, despite this, some fed members this week have suggested that the bank could still hike rates as inflation hits 2%. This is, of course, depending on how the economic recovery progresses.
Speaking on Thursday, Fed Chairman Powell said:
“Economic activity has picked up from its depressed second-quarter level, when much of t...
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