Gold falls as the dollar rises amid expectations of rate hike

Gold prices fell slightly on Tuesday, weighed by gains in the dollar amid expectations of further interest rate hikes, while caution prevailed ahead of key inflation data due later this week.

Spot gold prices fell 0.1% to $1,665.89 an ounce by 0612 GMT, after touching the lowest level since October 3.
the first. US gold futures fell 0.1% to $1,672.60.

US 10-year Treasury yields posted a modest increase to 4%, while the dollar index rose 0.3%, making gold more expensive for buyers holding other currencies.

After the stronger-than-expected US employment data, the focus is now on the inflation data due to be released Thursday, which is expected to remain elevated and reinforce the hawkish approach of the US Fed.
Although gold is considered a hedge against inflation and economic uncertainty, higher interest rates reduce the attractiveness of the non-yielding metal.

For other precious metals, silver prices fell in spot transactions 1.3% to $ 19.39 an ounce.

Platinum fell 0.3% to $896.08, while palladium rose 0.3% to $2,178.26.
Prices for palladium, which is used in car emissions control devices, and platinum, have risen about 15% this year.