© Reuters. Gold bars in a photo from the Reuters archive.
(Reuters) – Gold fell more than 1% on Friday due to rising bond yields after data showed inflationary pressures remained high, raising expectations of another large interest rate hike. at the US Federal Reserve meeting next week.
And the price dropped 1.3 percent to $ 1641.30 an ounce by 1743 GMT. And US gold futures fell 1.3% to $ 1644.8.
The Commerce Department said consumer spending, which accounts for more than two-thirds of US economic activity, rose 0.6% last month.
The dollar was up 0.3% against its rivals following the release of US economic data, which made gold more expensive for holders of other currencies. Revenues also increased.
The Federal Reserve is expected to raise the interest rate by 75 basis points at the Monetary Policy Committee meeting on 1 and 2 November. Traders also expect another 50 basis point hike in December.
Gold is very sensitive to rising US interest rates, as this leads to an increase in the opportunity cost of holding bullion that does not produce a return, as well as the effect of strengthening the dollar.
As for other precious metals, in spot transactions it fell 2.1% to $ 19.17 an ounce.
Platinum fell 1.8% to $ 942.13. It fell 2.4% to $ 1,895.46.
(Prepared by Ahmed El-Sayed for the Arabic Bulletin – Edited by Mustafa Saleh)
