Germany's IFO Business Climate index fell to 84.3 in September, the lowest since May 2020, missing estimates of 86.9, and down from 88.6 in the previous reading. 

Gold prices fell in European trade for the third straight session, hitting 29-month lows as the greenback climbs against major rivals. 

The dollar hit fresh 20-year highs on bullish Fed remarks while asserted the path of policy tightening until it reins in runaway inflation. 

Gold Prices Today

Gold prices fell 1.3% to $1,626 an ounce, the lowest since April 2020, while losing 1.7% on Friday, the second loss in a row amid the complete dominance of the dollar in the forex market. 

Gold prices lost 1.9% last week, the second weekly loss in a row as global central banks continued to tighten monetary policies and increase interest rates, hurting demand on gold futures. 

The Dollar

The dollar index surged over 1.4% on Monday for another session, hitting May 2002 highs at 114.53 against a basket of major rivals. 

Investors are buying up the greenback after the Federal Reserve hiked interest rates by 75 basis points for the third meeting in a row to 3.25%, the highest since 2008.

The Fed intends to maintain its bullish stance against inflation, raising rates to 4.5% by the end of the year, which means we have 125 basis points of rate hikes in the last two meetings of the yer.

The Fed is aiming for the neutral 4.75% level for interest rates, which means raising rates by just 25 basis points in 2023.

Jerome Powell

Fed Chair Jerome Powell said his message hasn't change since Jackson Hall, with the Federal Open Market Committee aiming to cut inflation 2% through aggressive policy tightening until it's done.

Estimates 

We expect gold prices to move in the negative zone and hit fresh 29-month lows, potentially heading for $1,600. 

The SPDR

Gold holdings at the SPDR Gold Trust fell 2.9 tones on Friday, the sixth decline in a row, to a total of 947.23 tones, the lowest since March 2020.

Oil services company Baker Hughes reported an increase of 3 in the US oil rig count to 602 rigs last week. 

Conversely, natural gas rigs fell by 2 to 160 rigs, while total oil and natural gas rigs rose by 1 to 762 rigs.

Oil prices swooned on Friday amid concerns about weakening global demand due to recession forecasts. 

The decline comes after the Federal Reserve and other global central banks moved to aggressive tighten policies and raise interest rates this week. 

Such decisions triggered concerns about a global recession that will hurt demand on commodities and services. 

US crude futures due in November fell 6.1% to $78.4 a barrel as of 17:45 GMT. 

Brent November futures fell 5.3% to $85.6 a barrel. 

Oil services company Baker Hughes reported an increase of 3 in the US oil rig count to 602 rigs last week. 

Conversely, natural gas rigs fell by 2 to 160 rigs, while total oil and natural gas rigs rose by 1 to 762 rigs.