Gold declined on Wednesday as the dollar strengthened and the Federal Reserve (US Central Bank) pledged to tighten its monetary policies in response to the appeal of the precious metal that offers no return.
The price of gold in instant transactions fell by 0.1% to $ 1650.02 per ounce by 03:17 GMT, while the price of US gold futures finished at $ 1654.80.
After falling on Tuesday to its lowest point since the sixth of October, the dollar index increased by 0.1%.
According to market expert Yip John Rong, “the market participants may want to see a clearer ending to raise the Federal Reserve interest rates before restoring some confidence in gold prices.” He also noted that the cash tightening appears to be far from being finished due to the risk of escalating inflation.
In addition to the militant statements of the Federal Reserve Council, Nile Kacquari, the head of the Council in Meniabolis, said on Tuesday that the US Central Bank may need to pay the interest rate over 4. 75% if the basic inflation does not stop the rise.
When it meets in November, it is widely anticipated that the US Central Bank would propose raising the interest rate by 75 basis points for a fourth time in a row.
Although high interest rates increase the cost of alternative opportunities to own the yellow metal that does not produce return, gold is typically thought of as hedging against inflation.
In terms of other precious metals, palladium increased by 0.4% to 2022.13 dollars, platinum settled at 907.38 dollars, while silver decreased by 0.3% to $ 18. 70 per ounce in quick trades.
With the strengthening of the dollar and anticipated rises in interest rates, gold prices fall.
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