Decline under the Japanese Influence

The Bank of Japan announced that it will purchase numerous bonds. In addition, with the statement that the Fed will be more aggressive in increasing interest rates, gold showed a decline at the start of the week.

It scared gold investors. It declined as demand for dollar-denominated safe assets fell. Spot gold fell to $1,933 an ounce in the first trade of the week. On the first day of the week, after the Bank of Japan announced that it would buy unlimited bonds for 10 years, the yen weakened against the strengthening dollar, which led to a decline in demand for spot gold.

"Gold is facing pressure from a rising dollar," said Nicholas Frappell, Global Managing Director of ABC Bullion, of the Bank of Japan’s move.

It is stated that investors will continue to feel the Fed's pressure on gold for a while. Oversea-Chinese Banking Corp. While his economist, Howie Lee, said that there are many factors affecting the movements of gold regarding the last decline, he said, "The downward movement experienced this morning may be the profit-taking movement after the rise last week."