Gold prices fell today, Tuesday, from the highest level in a week, which was recorded earlier in the session, with the rise of the dollar and Treasury yields, amid expectations that the major central banks will tighten their monetary policy once more.
And gold fell in spot transactions 0.2 percent to $ 1706.70 an ounce, by 14:30 GMT, following hitting its highest level since August 30 at $ 1726.49 in the Asian trading session.
US gold futures fell 0.2 percent to $ 1719.30.
The focus of this week will be on the European Central Bank meeting on Thursday when it is expected to raise interest rates by 75 basis points.
It is also expected that the Federal Reserve (the US central bank) will raise the interest rate by 75 basis points also at the monetary policy setting meeting on September 20 and 21.
The dollar jumped to a two-decade high following data showed the US service sector rebounding once more in August, making gold more expensive for overseas buyers.
US Treasury yields rose to their highest levels since June on expectations that the Federal Reserve will continue to raise interest rates. Higher returns increase the opportunity cost of holding non-returnable gold.
As for other precious metals, silver fell 0.2 percent to $18.12 an ounce, and platinum rose 0.9 percent to $853.46, while palladium fell 0.7 percent to $ 2018.37.
