Gold prices fell to their lowest levels in nearly two weeks, on Wednesday, with the dollar rising, while investors awaited inflation data released later this week in search of indications about reducing US interest rates.
Price movements
By 10:59 GMT, spot gold was down 0.5 percent at $2,308 per ounce, hitting its lowest levels since June 14.
US gold futures fell by 0.5 percent to $2,319.50.
On Tuesday, US Federal Reserve Board of Governors member Michelle Bauman reiterated her view that keeping borrowing costs unchanged “for some time” may be sufficient to control inflation, but she also expressed her readiness to tighten monetary policy if necessary.
High interest rates increase the opportunity cost of holding non-yielding gold.
The dollar rose 0.3 percent against rival currencies, making gold more expensive for holders of other currencies, while benchmark 10-year bond yields also increased.
Investors are awaiting estimates of gross domestic product in the United States in the first quarter, a decisive debate between US President Joe Biden and his Republican rival Donald Trump tomorrow, Thursday, and the personal consumption expenditures price index report to be released on Friday.
Data released yesterday, Tuesday, showed that American consumer morale declined in June amid concerns about economic prospects, but there remains optimism about the labor market amid expectations of moderate inflation over the next year.
Gold is seen as a haven from economic uncertainty.
As for other precious metals, silver fell in spot transactions 0.2 percent to $28.86, palladium fell 0.4 percent to $943.91, while platinum jumped 1.5 percent to $996.10.
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