Gold prices under pressure from surging dollar

Gold prices tumbled in European trade for another session on track to hit six-month lows under pressure from the surging dollar. 

Demand is also tumbling in India, hurting prices further. 

Prices Today

Gold prices fell 0.4% to $1,800 an ounce, after losing 0.2% yesterday, the fifth loss in six days, marking six-month lows at $1,784. 

The Dollar

The dollar index rose 0.9% today for a third session, marking fresh 20-year highs against major rivals. 

The gains came as Fed Chair Jerome Powell asserted efforts to control runaway inflation even if it caused economic pain. 

Indian Demand

The Indian Government decided to hike import taxes on gold to 12.5% from 7.5% to control demand.

Gold traders discounted prices considerably recently to boost weak demand, with the new decision expected to tank demand even more.

Estimates 

Prices are expected to hang between $1790 and $1,830 for a while, and might get some support soon if the Fed showed some leniency in policies as the economy slows down. 

The SPDR 

Gold holdings at the SPDR Gold Trust remained flat yesterday at 1,041 tones, the lowest since February 28.