Gold falls to its lowest level in a month and a half amid the strength of the dollar and the rise in bonds
Gold prices fell today, Wednesday, to their lowest level in a month and a half, as high Treasury bond yields and the strength of the dollar overshadowed optimism about a possible peace agreement between The United States and Iran.
The price of gold in spot transactions increased by 0.2% to $4472.09 per ounce, by 06:15 GMT, recording its lowest level since March 30. US gold futures (June delivery) also fell by 0.8% to $4,475.
In other precious metals, the price of silver rose by 1.1% to $74.64 per ounce, platinum increased by 0.2% to $1,925.30, and palladium rose by 0.9% to $1,366.
On the other hand, The dollaris at a 6-week high, making gold, priced in dollars, more expensive for holders of other currencies.
And yields on benchmark 10-year US Treasury bonds held at their highest level in more than a year, raising the opportunity cost of holding non-yielding gold.
Regarding US interest rates, most economists polled said "Reuters" In their views, the US Federal Reserve will avoid cutting interest rates this year, and have largely postponed their long-standing calls for a cut until next year, hoping that the current rise in inflation is temporary.
Investors are awaiting the minutes of the Federal Reserve’s April monetary policy meeting, scheduled for later in the day, to assess the US central bank’s outlook for monetary policy.
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