XAU/USD declines from $1,670 in the face of a turbulent DXYThe price of gold has fallen significantly since it crossed the $1,670.00 barrier.
The US dollar index (DXY) has become extremely volatile due to rumors that the Bank of Japan (BOJ) intervened in the FX markets to strengthen the Japanese yen, which has put some fair selling pressure on the precious metal.
The Federal Reserve policymakers are expected to raise interest rates by another 75 basis points at their meeting in November, according to Nick Timiraos, Chief Economics Correspondent at The Wall Street Journal (WSJ).
However, Monday's news that North and South Korea had fired warning shots at each other along their disputed western maritime border also appeared to have helped recent US dollar purchases.
Concerns that Chinese President Xi Jinping would not hesitate to intensify geopolitical issues with the US when it comes to Taiwan may be on the same lines. The third consecutive victory for Jinping at the annual Communist Party Congress may have contributed to the cause.
Future gold price declines are anticipated due to uncertain market conditions and challenges to sentiment.
