© Archyde.com. Gold bars are displayed at a bullion making plant in Mendrisio, Switzerland, on July 13, 2022. Photo: Dennis Balibouz/Archyde.com.
(Archyde.com) – Gold prices fell on Wednesday with the rise of the dollar following data showed that inflation rose in the United States last month at the slowest pace since late 2021, which increased investor concerns regarding the Federal Reserve’s continued tightening of monetary policy.
Spot gold prices fell 0.5 percent to $1,845.96 an ounce by 0538 GMT, following plunging to their lowest since early January on Tuesday. In the United States, it lost 0.5 percent, to $1,856.60.
High interest rates discourage investors from putting their money in non-yielding assets such as .
“Any further tightening of monetary policy is likely to affect gold for the foreseeable future,” said Matt Simpson, senior market analyst at City Index.
He added, “However, with the slowdown in the downward momentum in the market and the closing of gold stable (yesterday, Tuesday), despite the rise in inflation, the path may face fewer points of resistance (heading towards) a slight rise from current levels.”
The consumer price index in the United States rose 0.5 percent last month, in line with expectations. In the 12 months through January, the index rose 6.4%, the smallest increase since October 2021, but slightly higher than expected.
Fed officials said on Tuesday that the Fed needs to continue to gradually raise interest rates to beat inflation.
It rose 0.2 percent, making gold denominated in the greenback more expensive for holders of other currencies.
Spot market prices fell 0.5 percent to $21.74 an ounce, and platinum lost 0.4 percent, recording $927.06, and fell 0.2 percent to $1,493.76, following hitting its lowest level since August 2019 in the last session.
(Prepared by Mahmoud Abdel-Gawad for the Arabic Bulletin – Edited by Marwa Salam)
