In the followingnoon, the ounce of gold (31.1 grams) was trading at 1695 dollars on the London Stock Exchange, almost 16 dollars less than the day before.
The price of gold continued its slide of the past few days on Thursday and fell below the $1,700 mark, falling to its lowest level in more than six weeks. The prospect of a further rise in interest rates once more put pressure on precious metal prices.
In the followingnoon, the ounce of gold (31.1 grams) was trading at 1695 dollars on the London Stock Exchange, almost 16 dollars less than the day before. In the space of a week, the price of the yellow metal crumbled by more than 60 dollars. The last time it slipped below the symbolic threshold dates back to July 21.
In trading rooms, this drop is mainly explained by the strength of the dollar, which makes precious metals more expensive for potential buyers outside countries whose currencies are pegged to the greenback, thus curbing demand.
The prospect of another sharp rise in rates in the United States has recently resulted in an appreciation of the dollar in trade with other currencies. In addition, investors are increasingly turning away from precious metals as a value investment due to rising interest rates.
