Gold fell on Wednesday, July 20, as fears of monetary policy tightening and an increase in Treasury yields dispelled relief from the dollar’s decline.
By 06:10 GMT, gold fell in spot transactions 0.3% to $1,706.85 an ounce. US gold futures fell 0.3% to $1,706 an ounce.
The dollar fell for the fourth session in a row, although it remained at high levels, which makes the dollar-denominated metal less expensive for buyers of holders of other currencies.
Two sources familiar with the matter told Archyde.com that policy makers at the European Central Bank are considering raising interest rates by 50 basis points more than expected at their meeting tomorrow, Thursday, to contain inflation rising to record levels.
The yield on the US 10-year Treasury bonds stabilized after two sessions of gains.
As for other precious metals, there was little change in silver in spot transactions, and it remained at $18.74 per ounce. Platinum settled at $874.61 an ounce. And palladium rose 0.5% to $ 1884.66 an ounce.