Gold retreats as the dollar rises and markets await the US Federal Reserve's interest rate decision
Gold prices fell during Tuesday’s trading, weighed down by a stronger US dollar, as investors awaited the outcome of the Federal Reserve’s meeting and any signals it might provide about the future path of interest rates.
Translated by Qiyas from السياسة — Original source
Gold prices fell during Tuesday’s trading, weighed down by a stronger US dollar, as investors awaited the outcome of the Federal Reserve’s meeting and any signals it might provide about the future path of interest rates.
Spot gold prices dropped 0.7% to $4,044.81 per ounce by 02:50 GMT, after gaining nearly 1% in Monday’s session.
US gold futures for August delivery also fell 0.8% to $4,045.40 per ounce, as the US dollar held its highest level in a month, increasing the cost of gold for holders of other currencies.
The Federal Reserve concludes its regular monetary policy meeting on Wednesday, amid growing expectations that interest rates will remain unchanged.
According to the CME Group’s “Fed Watch” tool, the probability of a rate hold stands at 62%, compared to a 38% chance of a rate hike of at least 25 basis points, down from 16% a week ago. Markets are also pricing in an 81% probability of a rate increase at the next meeting in September.
In other precious metals markets, silver fell 1.9% to $57.30 per ounce, platinum declined 1% to $1,605.14, and palladium dropped 1.6% to $1,271.09 per ounce.
