Gold falls as the dollar and bond yields rise economy

Gold prices fell today, Tuesday, with the rise in the dollar and US Treasury bond yields, as investors awaited the release of the minutes of the Federal Reserve (US central bank) meeting for June, searching for clues about the direction of the monetary policy of the new governor, Kevin Warsh.

• Gold fell in spot transactions by 0.9% to $4,127.3 per ounce at the time of writing the report.
• US gold futures for August delivery fell 0.7% to $4,138.5.

Matt Simpson, senior analyst at StoneX, said: “Gold recorded a good recovery last week, so it is not surprising that it retreated a little from some of those gains at the beginning of this week.”

The dollar rose, which increased the cost of gold priced in the US currency for holders of other currencies, while benchmark US Treasury bond yields for 10 years rose to their highest level in two weeks.

Nicholas Vrabel, director at ABC Refinery, said: “It is clear that markets are waiting for some guidance from the minutes of the Federal Reserve meeting to form a clearer idea of ​​how the central bank is thinking about…
Short-term interest rate policy.

Tomorrow, Wednesday, the minutes of the Federal Open Market Committee meeting held on June 16 and 17 will be released.

Gold prices fell by more than 25% from their record levels reached earlier this year, as the American-Israeli war with Iran raised concerns about inflation, strengthened the dollar, and increased…
Expectations of interest rate hikes.

But the precious metal recorded its highest level in two weeks yesterday, Monday, as the ceasefire agreement between the United States and Iran eased some concerns related to inflation, and US jobs data, which came weaker than expected last week, prompted the markets to lower their expectations about raising interest rates in the near term.

The CME Group’s Fed Watch tool indicates that traders expect a probability of approximately 56% for an increase in interest rates in September, down from more than 60% before the release of the data.

High interest rates make gold, which does not generate a return, less attractive to investors.

As for other precious metals:

• Silver fell in spot transactions by 1.6% to $61.10 per ounce.
• Platinum fell 0.9% to $1,617.20.
• Palladium fell 1.3% to $1,251.61.