June 6, 2023

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Oil rises $ 2 after G7 pledges new sanctions on Russia by Reuters

Gold falls on dollar rise, US interest rate hike fears Reuters

© Reuters. Gold nuggets at a US mining facility in this photo from the Reuters archive

(Reuters) – The dollar fell on Monday as it rebounded amid expectations that the Federal Reserve will raise interest rates sharply, increasing pressure on the yellow metal.

It was down 0.6 percent at $1,791.33 an ounce by 0704 GMT, after rising about 1.6 percent last week. U.S. gold futures were down 0.5% at $1,807.30.

It extended earlier losses against its rivals by 0.2 percent, making gold more expensive for buyers holding other currencies.

Investors await the minutes of the Federal Reserve’s latest monetary policy meeting on Wednesday for further clues on future rate hikes.

Although gold is considered a hedge against inflation, rising US interest rates are limiting the attractiveness of the low-yielding yellow metal.

“Gold posted its fourth consecutive weekly gain as inflationary pressures eased. However, these same issues could ultimately be negative,” ANZ analysts said in a note.

As for other precious metals, spot transactions were at $20.57 an ounce, with platinum down 1.3 percent at $950.37, while at $2222.23.

(Prepared by Towa Muhammad for Arabic Bulletin)

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