Gold prices fell Wednesday, September 7th as the dollar and Treasury yields rose following upbeat economic data boosted expectations that the US Federal Reserve will continue to raise interest rates sharply.
And gold fell in spot transactions 0.5% to $ 1692.99 an ounce by 03:30 GMT, following falling earlier to its lowest level in a week.
US gold futures fell 0.6% to $1,703.30.
Strong US service sector data boosted the dollar, and the dollar index jumped to its highest level in 20 years, making gold more expensive for overseas buyers.
Ten-year US Treasury yields rose to their highest level since June 16 amid expectations that the Federal Reserve will continue to raise interest rates. Higher returns increase the opportunity cost of acquiring gold, which does not generate returns.
The Fed is expected to raise interest rates by 75 basis points on September 21. The US Federal Reserve has raised interest rates by a total of 225 basis points since March to curb soaring inflation.
As for other precious metals, silver fell in spot transactions 1.1% to $17.85 an ounce, platinum fell 1% to $844.43, and palladium fell 1% to $185.25.
Source: cnbcarabia
