Gold ingots in a USA mining facility. Reuters
(Reuters) – Gold prices fell on Tuesday, dragged down by the rise of the dollar and bond yields, as investors awaited the reaction of central banks to escalating inflation pressures ahead of important meetings coming in days.
And the price of gold in spot transactions fell 0.1 percent to $ 1805.06 an ounce (an ounce) by 0607 GMT. US gold futures were unchanged at $1806.00.
The precious metal jumped nearly one percent on Monday, recording 1809.66 an ounce, a difference of about four dollars from its highest level in nearly a month, which was reached last week.
The dollar rose 0.1 percent on Tuesday, after falling to its lowest level in nearly a month in the previous session, reducing the appetite for gold for holders of other currencies.
“Gold will remain relatively well supported in the current inflation environment until the Federal Reserve takes a strong containment action,” said Stephen Innes, managing partner at SBI Asset Management.
He continued, “But if inflation spreads and gets out of control, the Reserve Board may raise prices quickly, and this would reduce demand in the gold market.”
Investors are now looking forward to Thursday’s European and Japanese central bank meeting, followed by the US Federal Reserve meeting next week and the Bank of England policy committee meeting. The US GDP data for the third quarter of the year is also expected.
As for other precious metals, silver fell in spot transactions 0.4 percent to $ 24.46 an ounce. Platinum fell 0.6 percent to $ 1051.11 and palladium settled at $ 2050.46, unchanged.
(Prepared by Amal Abu Al-Saud for the Arab Bulletin – Editing by Mahmoud Salama)
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