Gold falls 1% as the dollar rises

Gold fell 1 percent today, Tuesday, as trading continued to be weak in major Asian markets due to the Lunar New Year holiday, while the rise in the dollar also led to pressure on prices.

Gold fell in instant transactions by 0.9% to $4,947.98 per ounce by 0110 GMT, after losing 1% earlier in the session.

US gold futures for April delivery fell 1.6 percent to $4,966.80 an ounce.

The dollar index rose 0.2 percent against a basket of currencies, making gold more expensive for holders of other currencies.

US markets were closed yesterday on the occasion of Presidents’ Day holiday, while markets in mainland China, Hong Kong, Singapore, Taiwan and South Korea were closed on the occasion of the Lunar New Year holiday. The CME Group’s Fed Watch tool shows that markets currently expect the Federal Reserve (the US central bank) to cut interest rates three times by 25 basis points this year.

Gold, which does not generate a return, rises as interest rates fall.

As for other precious metals, silver fell in spot transactions by 2.7 percent to $74.51 per ounce, after declining by more than three percent earlier.

Platinum in spot transactions fell 0.8 percent to $2,025.05 per ounce, while palladium fell 1.5 percent to $1,698.10.