Gold falls ahead of US Central Bank Chairman’s speech

Gold prices fell today, Tuesday, with the rise in the dollar and US Treasury bond yields ahead of the release of economic data and a speech by Federal Reserve Chairman Jerome Powell this week, which could shift the direction of upcoming interest rate decisions.

According to Reuters, gold prices in spot transactions fell 0.1 percent to $1,916.88 per ounce by 0703 GMT. US gold futures prices also fell 0.2% to $1,930.00.

US Treasury bond yields rose to their highest level in more than a week, and the dollar also rose, which increases the cost of non-yielding bullion for holders of other currencies.

Markets are speculating that Powell’s planned speech on Thursday could provide more clarity on the central bank’s stance on interest rates after more dovish gestures by senior monetary policy officials in the past few weeks.

Higher interest rates would also increase the opportunity cost of holding gold

The tensions in the Middle East, which pushed gold prices as a safe haven to the highest level in more than three weeks on Friday, also exacerbated the uncertainty in the market.

As for other precious metals, silver fell in spot transactions by 0.3% to $22.53 per ounce, platinum by 0.2% to $889.06, and palladium by 0.4% to $1138.92.