Gold falls to its lowest level in a year and a half

Gold prices fell to their lowest levels since March 2021, Thursday, due to the rise in US Treasury yields and the rise of the dollar, as well as reduced bets that the Federal Reserve (the US central bank) will raise interest rates by a large percentage again from the attractiveness of the yellow metal.
And gold fell in spot transactions 1.2 percent to $ 1674.99 an ounce by 1450 GMT.
US gold futures fell 1.1 percent to $1,690.90.
Gold briefly pared losses after investors evaluated data showing US retail sales unexpectedly rose in August, while separate data showed that weekly jobless claims in the US fell by 5,000 to a seasonally adjusted 213,000 last week.
The markets have already absorbed a rate hike of at least 75 basis points at the end of the US Federal Reserve meeting next week, and the hike may reach 100 basis points.
Gold is usually considered a hedge against inflation, but it does not generate returns, so it is sensitive to interest rates and Treasury yields.
Meanwhile, IMF chief Kristalina Georgieva said on Wednesday that central bankers should persevere in the fight against large-scale inflation.
For other precious metals, silver fell in spot transactions 1.9 percent to $ 19.31 an ounce.
“The strength of the dollar index this week, along with rising US Treasury yields and some US inflation data, have all kept gold and silver buyers mostly on the sidelines,” Jim Wyckoff, analyst at Kitco Metals, said in a note.
Platinum rose 0.5% to $910.52, while palladium fell 0.7 percent to $2149.35.
(Archyde.com)