Gold has had a tough summer. The yellow metal lost 2% month-over-month to $1,715.90/oz in August, which is its fifth consecutive monthly decline. On the other hand, its rival asset, the U.S. dollar, has been on a tear lately. Many professional investors don’t expect the greenback to ease off anytime soon.
Looking ahead, gold is expected to remain under pressure if central banks continue on their path to hike interest rates aggressively. The markets are expecting another 75-basis point rate hike this week which is expected to create a short-term weakness for the metal, with an even deeper decline not ruled out by analysts.
