Gold prices fell on Monday, to their lowest level in more than five weeks, after the dollar and bond yields rose, ahead of the upcoming release this week of the US Federal Reserve’s July meeting minutes, which may provide clues that will guide the outlook for future interest rates.
Spot gold fell 0.1 percent to $1,912.29 an ounce by 0613 GMT, its lowest since July 7. US gold futures also fell 0.1 percent to $1,944.20.
US bond yields rose, pushing the dollar to its highest level since July 7, after data on Friday showed producer prices rose slightly more than expected in July, while services prices rose at the fastest pace in nearly a year.
“The US dollar appears to be on an upward trajectory on the back of markets finally realizing that even if the Fed is going to stop (raising rates), interest is likely to continue,” Clifford Bennett, chief economist at ACY Securities, told Reuters. Non-residential loans and bond yields on the rise.”
Higher interest rates and Treasury yields increase the opportunity cost of holding non-yielding gold that is priced in dollars.
As for other precious metals, spot silver fell 0.4 percent to $22.59 an ounce, a rate not recorded since July 6. Platinum fell 0.5% to $908.02, while palladium settled at $1,293.29.
2023-08-14 07:18:09
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