Gold is about to post its worst monthly performance since September By Reuters

© Archyde.com. Gold bars in a photo from the Archyde.com archive.

(Archyde.com) – The price of gold fell on Monday and is heading for the largest monthly decline since September, while markets expect a US interest rate hike on the back of economic data and the dollar’s rise affected the price of gold.

By 0658 GMT, it fell 0.2 percent to $ 1787.70 an ounce, and US gold futures fell 0.1 percent to $ 1789.20.

The US Federal Reserve plans to raise interest rates in March, assuming that the economy is not significantly affected by the spread of the mutated Omicron from the Corona virus and that it continues to grow at a healthy pace.

Although gold is a hedge once morest inflation, raising interest rates increases the opportunity cost of holding the precious metal, which does not generate returns.

It hovered around 18-month highs on Friday as traders awaited central bank meetings in Australia, Britain and the European Union. And the rise of the dollar makes gold more expensive for holders of other currencies.

For other precious metals, the price of spot transactions fell 0.3 percent to $22.36 an ounce.

Platinum rose 0.5 percent to $1012.99 an ounce, and settled at $2,377.42 an ounce, but it is on track to achieve a monthly gain of 25 percent, its best level since February 2008.

(Prepared by Lubna Sabry for the Arabic Bulletin – Edited by Suha Jado)

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