After the surprise cut decision from OPEC+, gold entered the new week with a decline as the dollar rose to prominence in safe-haven purchases.
After the surprisingly announced oil production cut by OPEC+, gold carried its decline for the second day with the effect of the stronger dollar with the increasing volatility in the global markets.
Below $1,950 was tested in the first trades of the week under the spot.
While the dollar appreciated against the G-10 currencies, bond yields also rose after the decision from OPEC+.
While investors wait for the Fed to loosen its aggressive monetary tightening policy, the oil production cut is also expected to impact the inflation outlook. This means that the outlook for gold also deteriorates.
Before this decline, gold had risen 7.8 percent in March, realizing its biggest monthly gain since November. On the other hand, in the last two weeks, the attractiveness of the precious metal, which is seen as a haven, started to decrease as the worries about the deepening of the crisis in the banking sector eased.
