Gold falls as the dollar rises
World gold prices have slightly decreased today under the influence of the strengthening dollar.
Further hikes in interest rates are expected and caution ahead of key inflation data to be released later this week.
Spot gold fell 0.1% to $1,665.89 an ounce, while U.S. gold futures fell 0.1% to $1,672.60.
The 10-year US Treasury yield marginally rose 4% as the dollar index rose 0.3%, making gold more expensive for buyers holding other currencies.
“This is a technical level of bond yields, it lifts the dollar and affects gold prices,” said Matt Simpson, an analyst at City Index, adding that the International Monetary Fund’s references to a global recession also spurred safe-haven dollar flows. , adding: “Right now, gold is stuck in a range of $1,658 to $1,676.
Following stronger-than-expected US employment data, attention is now focused on Thursday’s inflation data, which is expected to remain elevated and reinforce the Fed’s hawkish approach.
While gold is seen as a hedge against inflation and economic uncertainty, higher interest rates are reducing the attractiveness of the low-yielding metal. In other precious metals, spot silver fell 1.3 percent to $19.39 an ounce.
Platinum fell 0.3% to $896.08, while palladium rose 0.3% to $2,178.26 and prices for palladium, which is used in car emission control devices along with platinum, rose 15% this year.
This article was published in the electronic newspaper Al-Wiam, gold falls for the first time with the growth of the dollar.