On Monday, gold price fell to $1,620. The strong US dollar is the main culprit of the yellow metal’s woes, strategists at Commerzbank note

Gold appears to have lost its role as a safe haven to the USD

“Once again, it is the firm US dollar, which on a trade-weighted basis achieved a 20-year high, that is weighing extremely heavily on its price, as are the significantly higher bond yields.”

“Gold appears to have lost its role as a safe haven to the USD, which thanks to the Fed rate hikes is promising considerable returns again, at least in nominal terms.”

“A glance at the gold price in euros reveals that the slide in the gold price is attributable first and foremost to the strength of the USD: gold in euros has actually risen slightly of late, and at around €1,700 per troy ounce is trading back at its early September level.”