Gold falls below $1,650, and copper declines due to worries of a recession

Gold and copper prices decreased on Monday as the dollar reached a 20-year high on the back of rising interest rate and recession fears.

As the U.S. fought runaway inflation, the Fed increased interest rates and issued a dire economic forecast.

Eurozone and United Kingdom economic data revealed a sharp decline in business activity, heightening recession fears and diminishing metal market demand.

Spot gold stayed unchanged at $1,643.82 per ounce, while futures fell 0.3% to $1,653.30 per ounce as of 19:31 EDT (23:31 GMT). Last week, both assets reached their lowest level since early 2020.

After briefly reaching its highest level in 20 years, the dollar index fell on Monday. As the Federal Reserve boosts interest rates, the dollar should remain strong.

Rising yields pushed speculators into the dollar and Treasuries, causing a decline in the value of gold. After gold fell below $1,700 and $1,650 last week, traders anticipate further price drops.

On Monday, copper futures lost 0.4% to $3.3575 per pound, approaching two-month lows. After poor economic reports raised anxieties about global growth, prices of the red metal plummeted by over 5% last week.

This year, the economic downturn in China has harmed copper prices. Slowing U.S. and European industrial production has exacerbated losses.

A strike at the world's largest copper mine, Escondida, may increase long-term prices.