Gold prices are in decline, with a focus on US inflation data

Gold prices fell on Monday impacted by the rising dollar as investors await key US inflation data and the Federal Reserve (Central Bank of the United States) decision expected this week to raise gold interest rates.

The spot price of gold fell 0.2% to $1,793.44 an ounce at 00:09 GMT.

US gold futures fell 0.3% to $1,805.9, according to Reuters.

The dollar index rose 0.2%, making gold denominated in dollars more expensive for overseas buyers.

Investors will be closely following US consumer price index data on Tuesday and the Federal Reserve’s latest meeting for 2022, scheduled for December 13-14. Traders expect a 93% probability that the Federal Reserve will raise interest rates by 50 basis points.

Higher interest rates tend to increase the opportunity cost of holding gold because it pays no interest. Among other precious metals, the spot price of silver fell 0.7% to $23.29.

The price of platinum fell 0.7% to $1014.95, while the price of palladium fell 0.2% to $1946.62.

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