© Archyde.com. 50-gram gold bars in Mendrisio, Switzerland, on July 13, 2022. Photo: Denis Balibos/Archyde.com
From Arundhati Sarkar
(Archyde.com) – It rose on Wednesday, supported by the decline in the dollar, but gains were limited by expectations that the Federal Reserve (the US central bank) will adopt a sharp approach to contain inflation, which recorded a sudden rise last month.
Prices rose 0.2 percent to $ 1704.03 an ounce by 1116 GMT.
US gold futures fell 0.2 percent to $1,714.70.
Michael Howson, chief market analyst at CMC Markets, said that although weakness is helping to push gold off its lows, higher yields are likely to make it more difficult for prices to make any visible gains in the short term.
In the previous session, gold prices recorded the largest percentage drop in a single day since July 14, while the dollar witnessed its best daily performance since March 2020 following the sudden rise in the consumer price index in the United States in August.
Inflation data has raised expectations that the Federal Reserve will raise borrowing costs faster and more than previously estimated, with some even predicting that the Fed may raise interest rates by 100 basis points at the end of its meeting scheduled for September 20-21.
Among other precious metals, it rose in spot transactions by one percent to $19.51 an ounce.
Platinum rose 2.2 percent to $897.95, while palladium saw little change to $2106.46.
(Prepared by Marwa Gharib for the Arabic Bulletin – Editing by Ahmed Maher)
