Gold falls for seventh session on Fed’s continued hawkishness

Gold selling continued on Tuesday and recorded the longest losing streak since August 2022 in the last session after Federal Reserve (US central bank) officials confirmed the possibility of interest rates remaining high, while job vacancy data in the United States is released later on Tuesday.

Gold fell in spot transactions by 0.6 percent to $1,817 per ounce by 0306 GMT, and fell for the seventh session in a row, recording its lowest levels since March 9. US gold futures fell 0.7 percent to $1,833.40.

The dollar rose to hit a 10-month peak again, while Treasury yields reached a new high, the highest in 16 years, after data on Monday showed that US manufacturing industries took another step towards recovery in September.

The rise in the dollar and bond yields affects the yellow metal, which is priced in dollars and does not generate a return.
Federal Reserve officials say monetary policy should remain tight “for some time” to bring inflation down to the target rate of 2 percent.

Traders are now awaiting the US Department of Labor’s report on job vacancies, which will be issued later on Tuesday.

As for other precious metals, silver in spot transactions fell 1.4 percent to $20.77 per ounce, the lowest level in six and a half months.

Platinum fell 0.8 percent to its lowest level in a year at $869.90. Palladium fell 0.1 percent to $1,200.04.