Higher dollar pushes gold to 5-week low

Gold prices fell today, Monday, to their lowest level in more than 5 weeks, after the dollar and bond yields rose, ahead of the upcoming publication this week of the minutes of the US central bank meeting for the month of July, which may provide clues that will guide the expectations for future interest rates. ,

Spot gold fell 0.1% to $1912.29 an ounce by 0613 GMT, its lowest level since July 7. US gold futures fell 0.1% to $1944.20.

US bond yields rose, pushing the dollar to its highest level since July 7, after last Friday’s data showed producer prices rose slightly more than expected in July, while service prices rose at the fastest pace in nearly a year.

“The US dollar appears to be on an upward trajectory on the back of markets finally realizing that even if the Federal Reserve is going to stop ‘raising interest’, interest on non-credit loans is likely to continue,” said Clifford Bennett, chief economist at ACY Securities. Residential and bond yields are on the rise.”

High interest rates and Treasury yields increase the opportunity cost of owning gold, which does not yield returns and is priced in dollars.

As for other precious metals, spot silver fell 0.4% to $22.59 an ounce, a rate not recorded since the sixth of July. Platinum fell 0.5% to $908.02, while palladium settled at $1,293.29.