Gold fell below $4,100 per ounce for the first time in two weeks

Gold prices continued to decline and fell below the $4,100 per ounce mark, reaching their lowest level in two weeks. The precious metals market is under pressure from a massive sell-off in technology stocks, forcing investors to sell gold to cover losses in other assets, reports UNN citing Bloomberg.

Details

During the previous trading session, the spot price of gold lost 1.7%, and on Wednesday it fell another 0.8% to $4,083.77 per ounce. At the same time, the U.S. dollar strengthened, making gold more expensive for buyers outside the United States.

Analysts note that despite its reputation as a safe-haven asset, gold often declines during large-scale sell-offs in financial markets, as investors use it as a source of quick liquidity.

Investors are concerned about the Fed's policy

Additional pressure on the market is created by expectations of further interest rate hikes in the U.S. Investors are worried about the hawkish rhetoric of the new Federal Reserve Chairman Kevin Warsh, who signals a readiness to fight inflation by maintaining high borrowing costs.

Higher rates traditionally negatively affect gold, as the precious metal does not yield interest income. Along with gold, other metals are also declining: silver lost 1.1% and fell to $60.86 per ounce, while platinum and palladium are also showing negative dynamics.

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