Gold price dips below $1,700 on aggressive rate hike bets

Gold prices briefly slid below $1,700 for the first time in six weeks on Thursday, as major central banks stuck to an aggressive stance to combat inflation, dulling demand, reports Reuters.
Spot gold was down 0.5% to $1,701.90 per ounce by 1228 GMT after earlier touching $1,698.70, the lowest level since July 21 for non-yielding bullion. U.S. gold futures shed 0.72% to $1,713.70.
"The direction of least resistance looks lower just now for precious metals with the strong dollar continuing to weigh on the market," said independent analyst Ross Norman.
"Expect gold to trade down to test the $1,680 level," he added. Gold prices have come under pressure as multi-decade high inflation forces central banks around the world to tighten monetary policy.
The metal has dropped more than $350 since rising above$2,000 per ounce in early March, and marked a fifth monthly drop in August, its longest run of monthly losses since 2018.
The dollar also held firm at close to a two-decade peak, heaping pressure on gold by making it more expensive for buyers holding other currencies.
Elsewhere, spot silver fell 1.2% to $17.76 per ounce, hitting its lowest level in more than two years.
Silver has been challenged by the same factors as gold in addition to China related selling across industrial metals, said Ole Hansen, head of commodity strategy at Saxo Bank.