Gold prices fell to their lowest level in more than nine months, with the strength of the dollar and growing expectations of a strong interest rate hike.
The precious metal was negatively affected by the rise of the US currency to its highest level in 20 years once morest the major currencies, with investors preferring to hold the dollar to hedge once morest the risks of inflation and economic recession.
Market expectations indicate that the Federal Reserve will raise the interest rate by 75 basis points at the end of this month, which will represent the second consecutive monthly increase at the same pace.
But the Federal Reserve Bank of Kansas City President Esther George warned today of possible negative effects on the economy and financial markets due to a strong interest rate hike.
Upon settlement, the price of gold futures contracts for August delivery fell 0.6%, or $10.60, to $1,731.70 an ounce, the lowest settlement of the most active contract since September 2021.
The dollar index, which monitors the performance of the US currency once morest a basket of six major currencies, rose 0.9% at 107.937 points at 9:00 pm Mecca time.
