Gold prices fell Wednesday September 7 as dollar and Treasury yields rose after optimistic economic data reinforced expectations that the US Federal Reserve will continue to dramatically raise interest rates.
And gold fell in spot trades 0.5% to $ 1692.99 an ounce by 03:30 GMT, having previously fallen to its lowest level in a week.
US gold futures fell 0.6% to $ 1,703.30.
US service sector data drives the dollar up
Solid US service sector data strengthened the dollar and the dollar index jumped to its highest level in 20 years, making gold more expensive for overseas buyers.
Ten-year US Treasury yields rose to their highest level since June 16 amid expectations that the Federal Reserve will continue to raise interest rates. Higher returns increase the opportunity cost of acquiring gold, which does not generate returns.
The Fed is expected to raise interest rates by 75 basis points on 21 September. The US Federal Reserve has raised interest rates by a total of 225 basis points since March to curb the surge in inflation.
other metals
As for other precious metals, silver fell 1.1% in spot trades to $ 17.85 an ounce, platinum fell 1% to $ 844.43, and palladium fell by 1% to $ 844.43. 1% at $ 185.25.
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