Gold hits 3-week low on higher dollar and bond yields

Gold prices hovered at their lowest level in three weeks today, Thursday, due to pressures from the rise of the dollar and the yield on Treasury bonds, in light of fears that the Federal Reserve (the US central bank) will continue to raise interest rates by a large amount.

By 0049 GMT, gold fell in spot transactions 0.1% to $ 1627.04 an ounce. Prices hit their lowest since September 28 earlier in the session at $1,624.98 an ounce

According to “Reuters”, gold futures fell 0.1 percent to $1632.60 an ounce.

The dollar index was stable after rising 0.8% on Wednesday, while the yield on the 10-year US Treasury bond reached its highest level since mid-2008.

The latest data revealed that inflation continues to rise, far exceeding the central bank’s target of about two percent. This news had little effect in changing expectations of a fourth hike in the US interest rate by 75 basis points next month.

As for other precious metals, silver fell in spot transactions 0.4 percent to $18.36 an ounce. Platinum fell 0.6 percent to $878.52 an ounce, while palladium fell 0.6% to $1988.78 an ounce.