Gold Steady After BOE Warning Leaves Investor Sentiment Fragile

After the Bank of England's remarks about eliminating emergency market assistance by the end of the week upset traders and weakened investor mood, gold prices maintained stable in Asia.

Due to the Federal Reserve's constant rate rises and the possibility of more severe monetary policy tightening, gold has fallen roughly 19% from its year-high in March.

Geopolitical unrest and worries about more central bank actions to fight inflation have driven down the price of the traditional shelter, which is now trading far below the $1,700 per ounce mark.

The warning from BOE Governor Andrew Bailey to fund managers that they have till the end of this week to liquidate holdings that they can't keep up.

before market support is suspended increased pressure on the precious metal and increased Treasury rates and the value of the dollar. 

 The non-yielding metal, which usually exhibits a negative association with the currency and rates, surrendered gains of as much as 0.9% on Tuesday to end the day marginally higher.


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