Gold hits nine-month low as investors rush to dollar as haven

Bullion slid to its lowest intraday level in more than nine months after posting a fourth weekly loss Friday. Investors concerned about the prospect of a global economic downturn have turned in droves to the dollar, which is already up more than 2% this month.

Gold retreated as an energized dollar strengthened yet again in the run-up to US inflation data this week that’s set to shape the magnitude of the Federal Reserve’s next rate hike. Bullion slid to its lowest intraday level in more than nine months after posting a fourth weekly loss Friday. Investors concerned about the prospect of a global economic downturn have turned in droves to the dollar, which is already up more than 2% this month.Gold’s fortunes have ridden a roller-coaster ride this year as Russia’s invasion of Ukraine spurred a rally in the haven well above $2,000 an ounce in March, only for the momentum to fade as the growth and inflation outlook shifted. In recent weeks, investors have cut holdings in bullion-backed exchange-traded funds.US inflation figures this week may stiffen the resolve of Fed policy makers to proceed with another big increase in interest rates later this month. Economists estimate the gauge climbed 8.8% in June from a year-earlier to a fresh four-decade high. Spot gold traded 0.2% lower at $1,730.52 an ounce at 2:15 p.m. in Singapore, after falling as far as $1,723.32, the lowest price since September 30. The Bloomberg Dollar Spot Index was 0.2% higher, as spot silver, platinum and palladium retreated.

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