Gold prices have fallen to their lowest levels since March 2021 today, Thursday, due to rising U.S. Treasury yields and rising dollar, as well as reduced bets that the Federal Reserve (Central Bank of the United States ) will raise interest rates by a large percentage again from the attractiveness of the yellow metal.
And gold fell in spot trades 1.2% to $ 1674.99 an ounce by 14.50 GMT.
US gold futures fell 1.1% to $ 1,690.90.
Gold briefly cut losses after investors evaluated data which showed U.S. retail sales rose unexpectedly in August, while separate data showed weekly U.S. jobless claims are decreased by 5,000 to seasonally adjusted 213,000 last week.
Markets have already absorbed interest rate hikes of at least 75 basis points at the end of the US Federal Reserve meeting next week and the hike could reach 100 basis points.
Gold is generally 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 on Wednesday said central bankers should persevere in the fight against large-scale inflation.
For other precious metals, silver fell in spot transactions by 1.9 percent to $ 19.31 an ounce.
“The strength of the dollar index this week, coupled with rising US Treasury yields and some US inflation data, has left gold and silver buyers mostly on the sidelines,” Jim said in a statement. Wyckoff, an analyst at Kitco Metals.
Platinum was up 0.5% to $ 910.52, while Palladium was down 0.7% to $ 2149.35.
–
