© Reuters. A gold bar at a Mumbai bullion exhibition in a Reuters archive photo.
(Reuters) – Wednesday fell more than 1% to a three-week low as the dollar rose and yields rose as bets on Federal Reserve interest rate hikes reduced the attractiveness of the non-yielding metal. fixed.
At 1623 GMT, it fell 1.4% to $ 1629.33 an ounce after it hit its lowest level since September 28 at the start of the session.
US gold futures fell 1.3% to $ 1,634.
“The market remains very concerned about the Fed’s tightening of monetary policy,” said Bart Melek, head of commodity strategy at TD Securities.
Several US central bank officials reiterated their commitment to aggressively raise interest rates to curb high inflation. Markets expect to raise rates by 75 basis points in November.
Gold is generally seen as a hedge against inflation, but higher interest rates increase the opportunity cost of holding the non-productive yellow metal.
It increased by 0.7 percent. The rise in the dollar makes gold more expensive for overseas buyers. Ten-year US Treasury yields have also reached a new peak since 2008.
As for other precious metals, in spot transactions it fell 1.8 percent to $ 18.41 an ounce.
Platinum fell 2.9% to $ 881.51 and 1.2% to $ 1989.20.
(Prepared by Doaa Muhammad, Rehab Alaa and Marwa Ghareeb for the Arabic Bulletin – Edited by Mustafa Saleh)
