Gold prices stabilize with the decline of the dollar

Gold prices stabilize following the US central bank raised interest rates by a quarter of a percentage point.

• Gold prices stabilize with the decline of the dollar

Gold prices stabilized today, Wednesday, with the dollar slipping, following the Federal Reserve (the US central bank) raised interest rates by a quarter of a percentage point in a move that was widely expected.

With the new decision, the US interest rate range increases from zero – 0.25% to 0.25 – 0.5%.

And the price of gold in spot transactions rose 0.1% to $ 1920.45 an ounce (an ounce), following it fell during the session by as much as 1.2% to $ 1894.70, in light of the jump recorded by the US Treasury bond yields following the central bank’s announcement.

And US gold futures fell 1.1% at settlement to $ 1908.40.

Gold is very sensitive to rising interest rates, as this increases the cost of holding bullion that does not yield a return, while supporting the dollar priced in it.

However, the dollar index fell 0.5% once morest a basket of currencies, which makes gold less expensive for holders of other currencies. Meanwhile, the benchmark 10-year Treasury bonds have also fallen from recent highs.

In terms of other metals, the price of silver in spot transactions rose 0.3% to $ 24.94 an ounce, and platinum jumped 3.3% to $ 1018.65. As for palladium, it fell 0.2% to $ 2418.56 an ounce, as concerns regarding supply receded.