Gold prices settled near one-week lows on Tuesday, with investors expecting central banks’ plans to tighten monetary policy to keep interest rates high for an extended period, which in turn raises US bond yields and the dollar.
The price of gold did not witness little change in spot trading, and it recorded 1841.49 dollars an ounce (an ounce) by 0701 GMT, after it fluctuated within a limited range that did not exceed eight dollars.
Earlier in the session, gold hit $1836.10 an ounce, its lowest since June 1. The price of US gold futures settled at $1,843.70 an ounce, according to “Archyde.com”.
وارتفع dollar price Meanwhile, US 10-year bond yields rose to their highest in a month.
Analysts at JP Morgan expected gold to decline to an average of $ 1,800 during the third quarter of the year, amid an expected recovery in investor appetite for risks and the continued rise in US bond yields.
The Federal Reserve is on track to raise rates by half a percentage point in June and July. The European Central Bank will meet this week with expectations that it will raise rates this year.
Raising interest limits the demand for buying gold, as it increases the opportunity cost of buying the metal that does not generate a return.
With regard to other precious metals, the price of platinum fell 1.4% to $ 1002.89 an ounce, and palladium rose 0.5% to $ 2011.59 an ounce. Silver fell 0.6% to $21.92 an ounce.