Investors' Safe Harbor Gold Continues to Fall

Gold, which is called the safe haven of investors, came very close to a nine-month low after the US Federal Reserve (Fed) minutes emphasized that policy makers should keep interest rates high to prevent inflation.

Investors' safe harbor gold continues to fall. Gold has been hovering around nine-month lows after the Fed minutes revealed that interest rates are likely to be kept higher for longer than expected in order to prevent inflation from becoming persistent. Rising fears of recession (contraction in the economy) caused investors to prefer the dollar as a safe haven. Over the past two sessions, spot gold has also lost close to 4 percent. The minutes of the Fed meeting held on June 14-15 indicated that policymakers recognized the need for a further tightening stance if inflation is persistent. Markets are expecting a second 75 basis point hike in July, while investors will keep an eye on Friday's non-farm payrolls and unemployment figures.

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