October 1, 2022

Dubai Week

Complete Dubai News World

Gold falls amid signs of US interest rate hikes

Gold falls amid signs of US interest rate hikes

Gold prices eased from their highest level in more than a month on Thursday as comments from Federal Reserve (US central bank) officials pointed to further interest rate hikes, despite signs of easing inflation in the world’s largest economy. Gold is highly affected by rising US interest rates. Gold was down 0.3 percent at $1786.79 an ounce by 07:12 GMT in spot trades after reaching $1807.79 on Wednesday, the fifth of July. U.S. gold futures were down 0.6 percent at $1,802.10. Edward Mayer, analyst at ED & Fman Capital Markets said “After the inflation data in the US, the dollar fell sharply and (bond) yields also fell, but at the end of the day bonds are rebounding… This is affecting gold.” The benchmark 10-year U.S. Treasury yield rose to 2.7910 percent, after falling to 2.6740 percent on Wednesday. Data showed U.S. consumer prices did not rise in July due to a sharp fall in gasoline prices, raising hopes that the Federal Reserve will take time to raise interest rates in the future. However, central bank policymakers have indicated that they will continue to tighten monetary policy until price pressures are fully contained. Gold’s losses were capped against its rivals by a 0.1 percent fall in the dollar, which hit its lowest level in a month and a half in the last session. As for other precious metals, silver fell 0.3 percent to $20.53 an ounce in spot transactions, platinum rose one percent to $951, and palladium settled at $2240.64.