Recession fears and continued interest rate hikes put pressure on gold

On Friday, gold prices began to stabilize. Previously, the yellow metal was losing ground significantly amid growing recession risks and expectations of higher interest rate peaks by some leading central banks.

If at the beginning of this week gold attracted some buyers on signs of lower inflationary pressures in the United States, the trend quickly reversed after the Fed's announcement that the U.S. interest rate peak was likely to be higher than anticipated. 

Moreover, the recovery of the U.S. dollar as a defensive asset exacerbated gold's losses. 

The status of a safe haven asset was practically lost by the yellow metal this year. The reason for this was the increase in the opportunity cost of holding non-yielding assets, which was facilitated by rising interest rates in the United States.