© Archyde.com. A gold ingot at a bullion exhibition in Mumbai, in a photo from the Archyde.com archive.
(Archyde.com) – It fell more than 1% on Wednesday to a three-week low as the dollar rose and yields rose as bets on a Federal Reserve interest rate hike reduced the attractiveness of the non-fixed-yielding metal.
By 1623 GMT, it fell 1.4 percent to $ 1629.33 an ounce, following earlier in the session it touched its lowest level since September 28.
US gold futures fell 1.3 percent to $1,634.
“The market remains very concerned regarding the Fed’s tightening of monetary policy,” said Bart Melek, head of commodity strategy at TD Securities.
Several US central bank officials reiterated their commitment to aggressively raising interest rates to curb high inflation. Markets expect to raise rates by 75 basis points in November.
Gold is generally seen as a hedge once morest inflation, but higher interest rates increase the opportunity cost of holding the non-yielding yellow metal.
It rose 0.7 percent. The rising dollar makes gold more expensive for buyers abroad. Ten-year US Treasury yields have also hit a new peak since 2008.
As for other precious metals, it fell in spot transactions by 1.8 percent to $ 18.41 an ounce.
Platinum fell 2.9 percent to $881.51 and fell 1.2 percent to $1989.20.
(Prepared by Doaa Muhammad, Rehab Alaa and Marwa Ghareeb for the Arabic Bulletin – Editing by Mustafa Saleh)
