Gold down due to higher dollar, concerns about rate hikes ‎concerns

Gold prices fell today, Monday, as the dollar rose, with the release of a new set of data that reinforced fears that central banks around the world will continue to raise interest rates to contain inflation) as of 0037 GMT, after it climbed to its highest level since February 15 on Friday.

According to Reuters, US gold futures rose 0.3 percent to $1,859.60.

The dollar index rose, making gold less expensive for buyers holding other currencies.

Data on Friday showed that the services sector in the United States grew at a steady rate in February, with new orders and employment rising to more than their highest levels in one year, indicating that the economy continued to expand in the first quarter.

San Francisco Federal Reserve President Mary Daley said on Saturday that if data on inflation and the labor market continues to rise more than expected, it is imperative to raise interest rates and hold them at that level for longer than Fed policymakers expected in December. ..

European Central Bank President Christine Lagarde said core inflation in the eurozone will remain high in the near term and therefore a 50 basis point rate hike by the European Central Bank later this month is increasingly certain.

Although gold is considered a hedge against inflation, the rise in interest rates to reduce price pressures increases the opportunity cost of possessing gold that does not yield a return.

The price of silver in spot trading declined 0.2 percent to $21.20 an ounce, the price of platinum fell 0.7 percent to $970.84, and the price of palladium fell 0.6 percent to $1443.65.