Written by: Nawal Abbas
The prices of the yellow metal fell yesterday in local markets due to the drop in its prices globally, as the price of an ounce reached $ 1677 and the price of a gram of 24-karat gold is 20.29 dinars and 18.60 dinars per gram of 22 carats and 17.76 dinars per gram of 21 carats and 15.22 dinars per gram of 18 carats.
The drop in gold prices was due to an adverse reaction to the dollar’s rise, according to US newspapers and the return of increased Treasury yields, which reinforced economic data on expectations of a Federal Reserve rate hike.
And gold fell 0.1 in spot trades yesterday%at $ 1661.97 an ounce by 07:24 GMT, after hitting a low Its levels since April 2020 are at $ 1,658.30. Prices fell by 3.2%From the beginning of the week to today.
US gold futures also fell 0.4.%at $ 1,670.50. This occurs when 10-year US Treasury yields are near their highest level since June, while the dollar tends to rise weekly relative to its competitors. The Federal Reserve is expected to raise interest rates by 75 basis points on 21 September. The reserve has already raised interest rates by 225 basis points since March.
Gold is very sensitive to rising US interest rates because it increases the opportunity cost of holding bullion that doesn’t come back.
As for the other metals, silver fell in spot trades by 0.9%at $ 18.98 per ounce. Platinum fell 1.7%At $ 889.19, palladium also fell 1.7%at $ 2,099.54.
Gold traders confirmed that despite falling gold prices, there is stagnation in local markets during this period coinciding with the return of students to schools and the return of many people from travel, which has led to the lack of their ability to buy gold jewelry, while some gold traders expect a recovery in the sale of gold with falling salaries and gold prices continuing to fall.
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