Gold prices touch lowest level in 5 months

Gold prices touched their lowest level in 5 months today, Thursday, as the dollar and US Treasury bond yields gained momentum after recent strong economic data reinforced expectations that the US central bank will continue to tighten its monetary policy.

According to Reuters, the price of gold in the spot market reached $1891.70 an ounce by 0141 GMT, its lowest level since March 15.

US gold futures fell 0.3% to $1921.80 an ounce.

The minutes of the Federal Reserve’s July meeting showed that most of the bank’s policy makers still give priority to fighting inflation, while “some participants” pointed to the economic risks of raising interest rates too high.

Meanwhile, 10 US Treasury bond yields hit their highest levels in ten months, which pushed the dollar to its highest levels since mid-June and kept investors away from gold, which does not yield a return.

As for other precious metals, silver rose in the spot market 0.2% to $22.42 an ounce, while platinum settled at $882.50, after touching its lowest level since October. Palladium fell 0.3% to $1,205.70.