Gold fell below the level of $1700

On Thursday, the price of gold fell to the level of $1695 per ounce amid expectations that the US Federal Reserve System will continue to accelerate the pace of tightening its monetary policy.

The current price of the precious metal is $1694.40. The last time such price values were noted was in February 2021. 

The main pressure on the asset is exerted by the current monetary policy of the US Federal Reserve. It is expected that at the next meeting (September 21-22), the US regulator will raise the discount rate again. 70% of analysts expect an increase of 0.75 percentage points, while the remaining 30% of experts admit an acceleration in the rate of increase to 1 percentage point. Now the rate is at around 2.25-2.5% per annum after two-year increases of 0.75 percentage points.

Market participants began to assume an acceleration in the pace of rate hikes after the release of inflation statistics in the United States. The indicator decreased to 8.3% by the end of August (from 8.5% in July), although it was forecast at 8.1%. Representatives of the regulator note that inflation remains noticeably higher than the Fed's target level of 2%.

The tightening of monetary policy in the United States is also fraught with an increase in the profitability of American public debt, which acts as an alternative to gold «safe» investments.