Gold up on dollar’s declines, but fears of raising interest rates ‎limit gains

Gold prices rose on Monday due to the weakness of the dollar, despite central banks around the world maintaining their strict monetary policies to tackle rising inflation, which limited gold’s gains.

According to “Reuters”, the price of gold in spot transactions rose 0.3% to $1665.29 per ounce, as of 0115 GMT.

US gold futures rose 0.1 percent to $1,673.30

The dollar index, which measures the performance of the US currency against six major currencies, fell 0.2%, making the price of dollar-denominated gold less expensive for buyers abroad.

Policy makers at the Federal Reserve (the US central bank) were determined to raise interest rates despite the turmoil in global financial markets.

On Friday, Federal Reserve Vice Chairman Lael Brainard expressed full support for the US central bank’s interest rate plan to curb inflation.

Higher interest rates reduce the attractiveness of gold because it increases the opportunity cost of acquiring non-returnable assets.

As for other precious metals, the price of silver in spot transactions rose 0.7 percent to $19.12 an ounce, and the price of platinum rose 0.3 percent to 861.50, and palladium rose 0.5 percent to $2167.75.