US Federal Reserve’s interest rate hiking spree has sent the dollar index to a multi-year high.
Raging inflation across the world, broader equity market turmoil, and a looming threat of a global recession should have been a perfect climate for gold to thrive. However, the traditional safe haven asset is not shining bright. International gold price is down 20% from its peak seen in March to around $1644/ounce. The reason is simple. The strengthening US dollar has stolen gold’s thunder. The spate of interest rate hikes by the US Federal Reserve has sent the dollar index to a multi-year high.