Gold prices reversed course today, Monday, to trade higher as the dollar’s rising trend lost steam, after the precious metal plummeted earlier in the session to its lowest level in a month, after hints from the Federal Reserve (the United States’ central bank) of future interest rate hikes.
In spot deals, gold increased 0.07 percent to $ 17380. 00 per ounce by 1750 GMT. Earlier on Monday, prices fell to $1,720, their lowest level since July 27.
Gold futures in the United States increased by 0.
The price of gold has risen by 4% to $1,750.50 per ounce.
The dollar index has retreated somewhat from its 20-year highs, making gold more affordable for purchasers holding foreign currencies.
In a speech delivered in Jackson Hole, Wyoming, on Friday, Federal Reserve Chairman Jerome Powell stated that the US central bank will continue to raise interest rates to levels necessary to contain inflation.
Markets now anticipate a 75-basis-point rate rise at the next Federal Reserve meeting in September.
Monetary policymakers at the European Central Bank have also urged for a hefty rate rise next month, even as the prospects of a recession loom.
Gold is seen as a tool for mitigating economic risks, but rising interest rates raise the opportunity cost of obtaining the yellow metal, which does not provide a return.
Among other precious metals, spot silver declined 0.6% to $18.77 per ounce, while platinum increased 0.5% to $864.74. Palladium increased 1.3% to $2,138.30.
As the dollar falls, gold rises from a one-month low.
About Author
