Gold tested its lowest level in 2.5 years on the first trading day of the new week. 

While strengthening the dollar in global markets put pressure on all asset classes, it also had a downside effect on the commodity market. 

On the first trading day of the new week, an ounce of gold tested below $1.627 in the spot market. 

Last week, the precious metal suffered its steepest weekly loss in almost four years as central banks hiked interest rates to contain rising prices, with fund managers expecting a massive decline. 

It is stated that recent fluctuations may occur in the markets with the announcement of US inflation data in the coming days and the speeches of officials, including Fed Vice President Lael Brainard and New York Fed President John Wiliams. 

“Gold still has a downward trend as the dollar continues to gain momentum,” said Nicholas Frappell, Global Director of Corporate Markets at ABC Refinery, adding, “Spot gold will have stronger support at $1600.”