Gold falls to the lowest level in a week

Gold prices fell Wednesday, heading towards the lowest level in one week, reached in the previous session, as US Treasury yields rose to their highest levels in the last two years due to expectations that the US Federal Reserve will significantly raise interest rates, which undermined the metal’s attractiveness. yielding. .

And the price of gold in spot trades fell 0.2% to $ 1810.90 an ounce, after falling to its lowest level. in a week at $ 1805 an ounce Tuesday. US gold futures fell 0.1% to $ 1,810.80.

Gold is considered a hedge against inflation, but higher interest rates tend to affect the precious metal.

The returns record Treasuries jumped to a two-year high as the dollar index posted its largest daily gain yesterday in four weeks, increasing the cost of holding gold for holders of other currencies.

Traders are looking forward to the Federal Reserve meeting on January 25 and 26 and expect a more aggressive approach in the face of persistent inflation, which is the highest. in almost 40 years at 7%.

As for other precious metals, silver fell 0.2% in spot trades to $ 23.41 an ounce, platinum fell 0.8% to $ 973.64, and palladium fell by 0.4% at $ 1,889.46.

Read More About: Business News