Gold hits 2-month low, with increasing fears about interest rate ‎hikes in America ‎

Gold prices fell to the lowest level in the two months today, Monday, after strong American economic data have been removed fears that the Federal Reserve (the US Central Bank) will take more interest rates to curb inflation.

According to “Reuters”, gold fell 0.1 percent 0.1 percent to $ 1808.51 an ounce by 0541 GMT. US gold futures fell to $ 1815 an ounce.

Friday data showed a significant increase of 1.8 percent in the spending of American consumers last month, which is the largest increase since March 2021, while the personal consumption expenses index increased the preferred index of the US Central to measure inflation, by 0.6 percent after increasing 0.2 Percent in December.

Gold is a hedging tool from inflation, but raising interest rates reduces its attractiveness to buyers, as it raises the cost of an alternative opportunity to possess the precious metal that does not generate returns.

Silver fell 0.9 percent to $ 20.58 an ounce and platinum fell 0.3 percent to 906.94 dollars, while palladium increased 0.9 percent to $ 1415.96 an ounce.