Gold falls due to the rise of the dollar and concerns about raising interest rates

Gold prices fell on Tuesday, pressured by the dollar’s rise. At the same time, the possibility of higher US interest rates for a longer period also affected the non-yielding allure of the precious metal.

And gold fell in immediate transactions 0.3 percent to $ 1732.10 an ounce (an ounce) by 0736 GMT, after reaching its lowest level in a month at $ 1719.56 in the previous session. US gold futures fell 0.3 percent to $1,744.10.

The dollar index hovered near a two-decade peak on Monday.

At a central bank conference in Jackson Hole, Wyoming, the US Federal Reserve and the European Central Bank demonstrated a tough stance. It pledged to do everything possible to rein in relentlessly rising inflation even if it negatively affected growth.

While gold is considered a safe haven in times of economic uncertainty, higher interest rates increase the opportunity cost of holding gold.

Markets are now preparing for the possibility of a 75 basis point rate hike at the Federal Reserve’s September meeting.

Among other precious metals, spot silver fell 0.2 percent to $18.72 an ounce. Platinum fell 1.2 percent to $853.63 and palladium rose 0.1 percent to $2149.53.