Spot gold fell 0.8% to $2,301.16 an ounce, hitting its lowest level since June 10.
Reuters.- Gold prices fell 1% to their lowest level in more than two weeks on Wednesday, pressured by a stronger dollar and higher bond yields, as traders awaited US inflation data due out later This week.
Spot gold fell 0.8% to $2,301.16 an ounce by 1803 GMT, hitting its lowest level since June 10. US gold futures also closed down 0.8% at $2,313.2.
“At this point, it is very possible that the market is responding to the strength of the US dollar and we continue to value the possibility that the Federal Reserve does not move (interest rates) sooner,” said Bart Melek, chief commodity strategist. premiums from TD Securities.
The dollar rose 0.4% to a near two-month high against its rivals, making gold more expensive for holders of other currencies, while benchmark 10-year U.S. bond yields hit their highest level in almost two weeks.
Attention will be focused this week on the U.S. personal consumption expenditures price index, the Federal Reserve’s preferred gauge of inflation, which could shed light on the path of the central bank’s interest rates.
Also on the radar are U.S. gross domestic product estimates for the first quarter and a crucial debate between President Joe Biden and his Republican rival Donald Trump on Thursday.
Fed Governor Michelle Bowman on Tuesday reiterated her view that keeping the policy rate stable “for some time” will likely be enough to control inflation, but she also repeated her willingness to raise borrowing costs if necessary.
Higher rates increase the opportunity cost of holding bullion, which does not earn interest.
In other precious metals, spot silver fell 0.1% to $28.88; Palladium fell 2% to $929.25; and platinum gained 3.1%, to $1,011.88.
