Gold approaches worst monthly performance since 2008.. Why did the ounce drop below 4000 dollars?



The spot price of gold fell during Tuesday's trading to 3975.04 dollars per ounce, heading towards recording the largest monthly loss since October 2008, after losing 12.4% of its value during June.

But gold later reduced part of its losses and returned to trading near 4000 dollars per ounce.

Pressures on gold came with rising expectations of raising US interest rates and the strength of the dollar, as markets await the release of US employment data this week, which may affect the Federal Reserve's decisions regarding monetary policy.

Analysts believe that gold's recovery in the coming period depends on a decline in real yields, or a weakening of the US dollar, or receding expectations of monetary policy tightening.

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