This week investors were looking for confirmation on whether or not to buy gold, with the value of the US dollar being boosted by the high possibility of interest rate hikes.

After dropping six days in a row from the August 15 opening price of $1,801 per ounce to the August 22 closing price of $1,735 per ounce, the yellow metal had a three-day comeback.

But the trend was interrupted by the fundamentals addressed by Federal Reserve chairman Jerome Powell at the Jackson Hole Economic Policy Symposium last Friday, when pledging that the Fed would keep raising interest rates to tackle inflation.

The news pushed the price of gold down from $1,757 per ounce to $1,736 per ounce, as indicated by a one-day trading candlestick.

“It is to be expected that gold would dip while the dollar market is supported by further likely US interest rate hikes in the future,” said PP Link Securities business manager Chhea Chhayheng.

On Wednesday, the opening price of gold was around $1,723 per ounce, still on a downtrend, Chhayheng noted.

Despite the gold market experiencing significant increases at the beginning of the Russia-Ukraine crisis, rising interest rates have mostly negated the haven asset’s gains this year.

“Gold fell more than one per cent on Friday after Federal Reserve Chair Jerome Powell in his speech at Jackson Hole said the

US economy will need tight monetary policy ‘for some time’ before inflation is under control.

“Powell said this could mean slower growth, a weaker job market and ‘some pain’ for households and businesses, but did not hint at what the Fed might do at its upcoming September policy meeting,” CNBC reported.

CNBC also quoted Chicago-based Blue Line Futures chief market strategist Philip Streible as saying: “Since there was no dovish pivot from Powell, gold will continue to face pressure as it will have to deal with higher interest rates.”

Based on technical analysis, Chhayheng said the gold price has seen support at $1,700 per ounce, but it remains to be seen whether it is strong.