Gold prices fall for the second session in a row

Gold prices fell for the second session in a row, today, Thursday, with the rise in the dollar and US Treasury bond yields, amid anticipation of key inflation data that may provide more indications about the Federal Reserve’s plan regarding interest rates.

By 05:48 GMT, gold fell in instant transactions by 0.6% to $2,325.73 an ounce, after falling 1% yesterday, Wednesday. US gold futures also fell 0.8% to $2,323.40, according to Reuters.

The dollar rose 0.5%, making the precious metal it is priced in less attractive to holders of other currencies.

“I think it comes down to investors realizing that the current high interest rate environment is likely to continue for a long time,” said Tim Waterer, chief market analyst at KCM Trade.

He added, “With the focus shifting again to the pursuit of US bond yields and the dollar, gold lost some interest this week.”

Gold has fallen by more than $100 since it reached a record level of $2,449.89 on May 20, after hawkish statements from Federal Reserve officials and the minutes of its last meeting indicated that inflation will take longer to reach the target level of 2%, which may disrupt cutting interest rates.