Pressure on gold is intensifying due to a stronger dollar and increasing interest rates

The U.S. GDP data for the third quarter showed stronger than expected. On this background, the dollar is recovering and gold prices are declining slightly.

The Federal Reserve System has more options to increase interest rates rapidly because of signals that the economy is stable. Thus, the dollar and treasury bond yields have increased, putting pressure on metal prices.

On Thursday, data appeared that chilled expectations for a softening interest rate increase in December from the FRS. It also affected traders, who increased their expectations of a rise by 75 basis points.

The trend may be bearish for gold prices, especially on the back of expectations of a U.S. interest rate increase.

The central bank is expected to increase interest rates by 75 basis points next week.

Bullion prices have been lowered because of this year's increase in interest rates, as the opportunity cost of owning gold, which does not provide a profit, has risen significantly.