In addition, gold prices are also pressured by the rebound in US Treasury yields. This increases the opportunity cost of holding gold. Because gold is an asset that does not return in the form of interest.
Comex gold contract Delivered in Dec. It fell $6.50 to close at $1,807.20 an ounce.
Chicago Fed President Charles Evans said the consumer price index (CPI), which indicates US inflation slowed in July. This is the first “positive” data since the Fed began tightening its monetary policy.
However, Mr Evans said Inflation remains unacceptably high. And the Fed needs to continue raising interest rates.
San Francisco Fed President Mary Daly said it was too early for the Fed to declare victory in the fight once morest inflation.
She also did not rule out the possibility of the Fed raising interest rates by 0.75% for the third time in a row at the September meeting.