falling gold
Gold prices fell during Tuesday’s trading, amid the dollar’s rise and anticipation of the Federal Reserve’s decision.
This comes after today’s data indicating that the Producer Price Index in America rose by 0.8% during May on a monthly basis, while it rose on an annual basis by 10.8%.
The consumer price inflation data also indicated an increase of 8.6% during the last month on an annual basis, the highest level since 1981.
The eyes of the markets are heading towards the Federal Reserve tomorrow, Wednesday, to reveal its decision on monetary policy, amid expectations of raising interest rates by 50 basis points to control inflation.
On the other hand, the dollar index (against a basket of major currencies) rose at 11:59 pm Mecca time by 0.3% to 105.4 points.
At the close of the session, gold futures contracts for August delivery fell by 1%, or $18.30, to $1813.5 an ounce.