PHYS - Gold settles below $1700 in lowest settlement since March 2021

Gold futures fell to their lowest in nearly 16 months on Wednesday, as the U.S. dollar edged higher following a brief pullback.

Front-month Comex gold ( XAUUSD:CUR ) for July delivery settled -0.6% to $1699.50/oz, its lowest settlement value since March 30, 2021, and off 16.7% from its 52-week high of $2,040 on March 8, 2022.

Front-month Comex silver ( XAGUSD:CUR ) closed -0.2% to $18.639/oz, its third-lowest settlement this year.

ETFs: ( NYSEARCA: GLD ), ( NYSEARCA: GDX ), ( IAU ), ( NUGT ), ( PHYS )

Top gold mining stocks post broad losses: ( NEM ) -3.8% , ( GOLD ) -3.1% , ( AEM ) -3.7% , ( AUY ) -1.9% , ( IAG ) -2% , ( AU ) -2.9% , ( GFI ) -2.5% , ( HMY ) -2.1% , ( AGI ) -3.3% .

While gold is considered as a hedge against inflation, analysts say the metal is hostage to rate-hike expectations due to its zero-yielding nature.

The metal had opened the week higher on reduced fears of a full percentage point Fed rate hike by the Fed, but it has failed to attract safe-haven flows as investors preferred the dollar.

"Gold, and every market for that matter, is reacting to the stark reality of a Fed seemingly intent to tighten into a recession," Gold Newsletter editor Brien Lundin said.

Forex.com's Fawad Razaqzada said recently that "ultimately, the dollar has to stop rising before we see gold make a meaningful comeback ."

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