#GOLD Prices at two years low why?
In the international markets, #GOLD prices plunged to two-year lows, falling by roughly 1.93 percent for the week, while in local markets, prices nearly flattened out as the Indian rupee fell to historic lows of around the 81.25 mark. The mighty dollar was the star of the week as it soared to new two-decade highs, surpassing even the 113 level and undermining the value of dollar-denominated gold. The US Fed hiked interest rates by 0.75 percentage points for the third straight month while sending a very hawkish signal, sending the greenback up by more than 3%. In accordance with forecasts, the Bank of England hiked interest rates by 50 basis points. The primary central banks' aggressive monetary tightening policy is thus perceived as lowering the precious metal. Furthermore, the strong performance of the US #DOLLAR is a significant headwind for gold prices, as the two have an inverse relationship.