© Archyde.com. Gold bars in Mendrisio, Switzerland, on July 13, 2022. Photo: Denis Balibos/Archyde.com
(Archyde.com) – It fell on Tuesday, pressured by the dollar’s rise, as the prospect of higher and longer US interest rates also weighed on the non-yielding allure of the precious metal.
It fell 0.3 percent to $ 1732.10 an ounce by 0736 GMT, after reaching its lowest level in a month at $ 1719.56 in the previous session. US gold futures fell 0.3 percent to $1,744.10.
It hovered near the peak of two decades on Monday.
At a conference of central banks in Jackson Hole, Wyoming, the US Federal Reserve and the European Central Bank demonstrated a tough stance and pledged to do everything possible to rein in relentlessly rising inflation even if growth was negatively affected by it.
While gold is considered a safe haven in times of economic uncertainty, higher interest rates increase the opportunity cost of holding gold.
Markets are now preparing for the possibility of a 75 basis point rate hike at the Federal Reserve’s September meeting.
Among other precious metals, spot transactions fell 0.2 percent to $18.72 an ounce. Platinum also fell 1.2 percent to $853.63 and rose 0.1 percent to $2149.53.
(Prepared by Ahmed El-Sayed for the Arab Bulletin – Edited by Marwa Salam)