Gold is losing some luster due to the strength of the dollar

Gold prices fell on Monday as a stronger dollar reduced the precious metal’s safe-haven appeal and investors awaited non-farm payrolls data in the United States and minutes from the latest Federal Reserve meeting to be published later this week.

Spot gold prices fell 0.4 percent to $1911.70 an ounce by 0857 GMT. US gold futures fell 0.51% to $1919.40.

Gold prices fell by a total of 2.5 percent in the April-June quarter.

Carlo Alberto de Casa, analyst at Kinesis, said there was a slight decline in gold prices due primarily to risk appetite in the market.

He added that, however, the precious metal is still above the $1900 level despite expectations of raising interest rates, and prices could remain in the $1900 to $1930 range before the release of the minutes of the Federal Reserve meeting held on June 13 and 14 to provide investors with more news. .

The dollar index rose 0.3%, making gold more expensive for holders of other currencies, while the 10-year US Treasury yield rose to 3.844%, after hitting its highest level since March last week.

The stagnant consumer spending in the United States in May indicates that the Fed’s recent hike in interest rates to tame inflation is bearing slow results. The core personal consumption expenditures price index, the Fed’s preferred measure for tracking inflation, rose 4.6% year-on-year, after rising 4.7% in April.

High interest rates would limit investment in gold, which does not yield a return. Investors see an 87 percent chance of a 25 basis point rate hike in July, according to CME Group’s Fed Watch service.

With regard to other precious metals, silver settled in spot transactions at $ 22.7667 an ounce, while platinum fell 0.6 percent to $ 895.61 and palladium fell 0.3 percent to $ 1224.34.