Gold rises with the dollar’s decline and fears of raising interest ‎rates reduce gains

Gold prices rose on Tuesday, as a weaker dollar made bullion more attractive to overseas buyers, although risks from an imminent Federal Reserve interest rate hike pared gains.

And according to “Reuters”, the price of gold in spot transactions rose 0.2 percent to $ 1653.31 an ounce (an ounce) by 0709 GMT.

But US gold futures fell 0.3 percent to $ 1658.50

The dollar index fell to its lowest level in about ten days, after the price of the sterling pound jumped after the United Kingdom abandoned the tax cut plan that had rocked global markets.

Jigar Trivedi, chief analyst at Reliance Securities, based in Mumbai, said the rise in gold prices today is mainly due to the weakness of the US currency.

Gold is down about 10 percent so far this year as the sharp rise in interest rates in the United States has increased the opportunity cost of holding non-yielding assets, and the dollar and bond yields rise.

The interest rate is expected to rise for the fourth consecutive time, 75 basis points next month, after data last week showed inflation rose strongly in September.

On the level of other precious metals, the price of silver rose 0.4 percent to $ 18.75 an ounce, platinum 0.4 percent to $ 919.49 and palladium one percent to reach $ 2020.40.