On Thursday (September 9), the international gold price stayed near the low point of $1,782.59 per ounce set overnight since August 6, and the strong U.S. dollar pressured gold prices. The Fed may still start the process of reducing bond purchases this year. The gold price looks at $1,757 in the market outlook.

Kitco Metals senior analyst Jim Wyckoff said that to the dismay of those who are bullish on the gold market, despite the rise in risk aversion in the market this week, the gold market is still selling. Concerns about slowing economic growth caused by the Delta variant shook the stock market this week, but the flow of funds into gold was limited by rising bond yields and a stronger U.S. dollar. A stronger U.S. dollar makes it more expensive for investors holding other currencies to buy gold.

The Fed stated in its latest Beige Book on Wednesday that the US economy "slightly slowed down" in August, and people are increasingly worried about the impact of a surge in the number of new cases on the economic recovery.

Societe Generale pointed out in a report that despite low interest rates and high inflation, gold's growth in 2021 is limited, which does not bode well for its prospects. We expect that as investment inflows further decrease, the price of gold will average $1,750 in 2022.

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