© Archyde.com. Gold bars in Tokyo in a photo from the Archyde.com archive.
(Archyde.com) – They fell on Tuesday, pressured by stable and rising US bond yields, as the US Federal Reserve prepared to announce a major interest rate hike to curb inflation.
And it fell by 0.4 percent to $ 1669.80 an ounce, at 0839 GMT.
US gold futures settled at $1,678.20.
“Gold is under pressure, still close to the two-year low, which it touched on Friday, and the main reason is the strength of the dollar,” said Ricardo Evangelista, chief analyst at ActivTrades.
The dollar remains stable near a two-decade high, making gold less attractive to holders of other currencies. Ten-year returns are near their highest level since 2011.
Although gold is considered a hedge once morest inflation, higher US interest rates increase the opportunity cost of holding non-yielding bullion.
As for other metals, it fell in spot transactions by 1.4 percent to $19.34 an ounce, while platinum rose 0.2 percent to $920.56, and it fell 2.5 percent to $2173.31.
(Prepared by Marwa Gharib for the Arabic Bulletin – Edited by Ali Khafaji)
