© Archyde.com. Gold bars in a photo from the Archyde.com archive.
(Archyde.com) – They fell on Monday as rising bond yields offset weakness amid expectations of higher interest rates as markets searched for new catalysts amid dwindling trading volumes.
It was down 0.2 percent at $1,789.29 an ounce by 1214 pm GMT. US gold futures fell 0.1 percent, to $1,798.00.
US Treasury yields rose on Monday while European government bond sales also affected the US market as the dollar fell.
Federal Reserve Chairman Jerome Powell said last week that the bank will continue to raise interest rates next year. Other major central banks have also indicated the same.
Although gold is considered a hedge once morest inflation, higher interest rates raise the opportunity cost of holding bullion.
As for other precious metals, it fell 0.7 percent to $ 23.05 an ounce.
Platinum fell 0.5% to $986.20, and fell 2.2% to $1,675.38.
(Reporting by Suha Jado and Mohamed Attia for the Arabic Bulletin – Edited by Ali Khafaji)
