The price of gold fell more than 1% on Wednesday, with the dollar regaining its momentum, making precious metals less attractive to holders of other currencies as markets looked to employment data in the states. United to predict the path of an interest rate hike by the Federal Reserve.
And gold fell 0.8% in spot trades to $ 1712.93 an ounce by 1752 GMT, after hitting a three-week high of $ 1729.39 on Tuesday.
US gold futures fell 0.6% to stand at $ 1,720.80.
The dollar index jumped 1% relative to its rivals, after losing 1.3% overnight, registering the largest decline since March 2020. US 10-year Treasury yields as well are increased.
The data showed that US employers in the private sector increased hiring in September, indicating that demand for workers remains strong despite rising interest rates and tightening financial conditions.
The focus now shifts to the nonfarm payroll data the markets are watching, which will be released on Friday by the U.S. Department of Labor.
Although gold is seen as a hedge against inflation, higher interest rates reduce the attractiveness of non-productive bullion.
As with other precious metals, the price of silver in spot transactions fell 2.7 percent to $ 20.54 an ounce. Platinum also fell 1.5% to $ 915.97 and Palladium fell 2.8% to $ 2250.67. (Reuters)
