Gold fell on Wednesday from its highest level in six months recorded in the previous session, due to the stability of the dollar and the continued rise in US Treasury bond yields, while investors evaluated the impact of the exacerbation of the Covid crisis in China, the largest consumer of precious metal.
By 1226 GMT, spot gold fell 0.5 percent to $1,804.48 an ounce, following reaching its highest level since the end of June on Tuesday. US gold futures also fell 0.6 percent to $1,811.60 an ounce.
The dollar index held steady, as US Treasury bond yields for ten years held near their highest levels in more than a month.
Gold increased regarding two hundred dollars following reaching its lowest level in more than two years at the end of September, following the dollar’s attractiveness was negatively affected by expectations that the Federal Reserve (the US central bank) would slow down the pace of raising interest rates.
Raising interest rates increases the opportunity cost of holding non-interest-bearing gold.
Investors are now awaiting the US Home Sales report due later on Wednesday and the US Jobless Claims report due on Thursday.
As for other precious metals, silver fell in spot transactions by 0.6% to $23.89 an ounce, while platinum increased 0.6% to $1026.42 an ounce, and palladium fell 1.4% to $1803.35 an ounce.
