Gold dipped below US$1,730 per ounce yesterday, a nine month low, on continued US dollar strength.
Gold had held up fairly well earlier in the northern hemisphere summer, as a combination of worries about inflation and the war in Ukraine kept risk investors interested.
But the US dollar is now steamrolling all before it, and gold is no exception.
Analysts at Capital Economics forecasted this week that the price could go as low as US$1,650 by the end of the year.
Gold is already 2% lower on a 12-month basis, although longer-term investors have nothing to fret about. The gold price is up by over 45% on a five-year view and by more than 450% on a twenty year horizon.
Still, with interest rates rising and the bond markets looking lively, the pressure is on. For now, at least, the dollar is setting the pace.