Gold down with eyes on stable dollar, fed policy ‎

Gold prices remained little changed today, Tuesday, amid the stability of the dollar, which balanced the limited support for the precious metal from the continued expectations of the Federal Reserve (the US central bank) to slow the pace of raising interest rates.

According to “Reuters”, gold in spot transactions fell 0.1 percent to $ 1646.79 an ounce (an ounce) by 0735 GMT, while US gold futures fell 0.1 percent to $ 1652.50.

The dollar index stabilized somewhat as the Chinese yuan weakened, removing pressure from expectations of the Federal Reserve easing its hawkish policies and greater stability for the pound sterling as Rishi Sunak prepares to take over as British Prime Minister.

Gold competes with the dollar as a hedge against inflation, and currency gains reduce the attractiveness of gold to buyers of other currencies.

Higher interest rates increase the cost of non-returnable gold, while supporting dollar and bond yields

As for other precious metals, silver fell 0.7 percent to $19.12 an ounce, and platinum fell 0.3 percent to $921.63 an ounce, while palladium rose 1.2 percent to $191.27 an ounce.