Gold prices fell on Thursday, August 11 from their highest levels in more than a month, as comments from Federal Reserve officials pointed to further interest rate hikes despite signs of easing inflation in the world’s largest economy.
Gold is highly affected by rising US interest rates, as they increase the opportunity cost of holding non-yielding bullion.
And gold fell in spot transactions 0.3 percent to $ 1786.79 an ounce by 0712 GMT, after hitting its highest level since July 5 at $ 1807.79 on Wednesday.
US gold futures fell 0.6% to $1,802.10.
Edward Meyer, analyst at E.D. & Fman Capital Markets “After the inflation data in the United States, the dollar fell sharply and (bond) yields also fell, but by the end of the day bonds are back up… which is hurting gold.”
The benchmark 10-year US Treasury yield rose to 2.7910%, after falling to 2.6740% on Wednesday.
The data showed that US consumer prices did not rise in July due to the sharp drop in the cost of gasoline, raising hopes that the Federal Reserve will take time to raise interest rates in the future.
Fed policymakers have indicated that they will continue to tighten monetary policy until price pressures are fully contained.
The dollar’s losses were limited by 0.1% against its competitors, after it fell to its lowest level in a month and a half in the last session.
As for other precious metals, silver fell in spot transactions 0.3% to $20.53 an ounce, while platinum rose 1% to $951, and palladium settled at $2240.64.
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