Gold to its lowest level in two weeks

Gold prices fell to their lowest in nearly two weeks on Wednesday as the dollar rose, while investors awaited inflation data due later this week for clues on whether U.S. interest rates will be cut.

By 13:48 GMT, gold fell in spot transactions by 0.5 percent at $2,294.2 per ounce, recording its lowest levels since last June 14.

Yesterday, Tuesday, Michelle Bauman, a member of the US Federal Reserve Board of Governors, reiterated her view that keeping borrowing costs unchanged “for some time” may be sufficient to control inflation, but she also expressed her willingness to tighten monetary policy if necessary.

Higher 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 U.S. first-quarter GDP estimates, a crucial debate between President Joe Biden and Republican rival Donald Trump on Thursday, and the personal consumption expenditures price index report on Friday.