If it does happen, it would be the longest streak since the late 1960s as Gold prepares for its seventh consecutive month of losses.
It will be the longest streak of declines since the late 1960s as Gold prepares for a seventh straight month of losses this week in anticipation of another significant rate hike from the Fed.
Spot gold has lost 10 percent of its value since it entered the year and 20 percent since its peak in March after Russia invaded Ukraine. The precious metal has slumped monthly since then and is poised for a 1% depreciation in October.
Aggressive rate hikes by the Fed to rein in high inflation led investors to the dollar, strengthening the U.S. currency and causing spot gold to plummet. A strong dollar and higher bond yields harm non-interest-yielding gold prices in dollars.
Spot gold slid below $1,650 last week as U.S. 10-year bond yields rose on Friday and U.S. economic data set the stage for a 75 basis point gain. The U.S. inflation benchmark accelerated in September, while consumer spending remained resilient, pointing to broad price pressures and robust demand.
Economists polled by Bloomberg expect Fed officials to maintain their hawkish stance at this week’s meeting, laying the groundwork for the policy rate to rise sharply to 5 percent by March 2023. It is evaluated that this situation may lead to a global recession, including in the USA.
