Gold is Falling With The Rise of The Dollar

Gold prices fell, after the dollar’s rise affected the attractiveness of the precious metal to holders of other currencies, while investors are awaiting the US Central Bank meeting to know indications about the time frame to reduce the stimulus program and raise interest rates.

Gold is a hedge against inflation and currency devaluation such as that caused by the widespread stimulus. Reducing the stimulus may address these two situations, which affect the attractiveness of gold.

And by 0702 GMT, spot transactions fell 0.4 percent to $ 1785.13 an ounce, while the price of US gold futures fell 0.4 percent to $ 1787.40 an ounce.

The dollar index rose 0.2 percent.

The Federal Reserve’s Open Market Committee meets on September 21-22, with a growing number of policymakers hinting at their support for ending the board’s bond-buying program starting this year.

As for other precious metals, silver fell one percent to $23.59 an ounce.

Palladium rose 1.1 percent to $2,024.51 an ounce. Platinum fell 0.7 percent to $940.81 an ounce.