Gold slipped as rising US Treasury yields weighed on investor appetite, and a slightly stronger US dollar was a headwind for investor demand. Economists at ANZ Bank expect the yellow metal to find a floor at the $1,700 level.

Growing recession fears should see some haven flows

“Aggressive Fed rate hikes and stronger USD are holding down the gold price. While growing recession fears, due to rising rates against sticky inflation, should see some haven flows.” 

“Central bank purchases are likely to be strong as currencies depreciate and geopolitical risks rise. This should help mitigate weaker physical demand.”

“We expect gold to find its floor near $1,700.”