Gold Falls Due to The Strength of The Dollar and The Tendency of US Fed to Raise Interest Rates

Gold prices fell on Tuesday, June 29, hovering near the lowest level in a week, which it reached in the previous session, as it was pressured by the rise of the dollar and fears that the US Federal Reserve will tighten its monetary policy earlier than expected.

Spot gold fell 0.2% to $1,774.30 an ounce after hitting its lowest level since June 21 at $1,770.36 on Monday. US gold futures fell 0.3% to $1,775.50.

A number of Fed policy makers have shifted towards a monetary tightening tone despite a weaker-than-expected inflation reading in America last week.

The dollar is hovering below a two-month high against its rivals, raising the cost of gold to holders of other currencies.

As for other precious metals, silver fell 0.3% to $26.02, palladium fell 0.3% to $2,678.11, and platinum fell 0.1% to $1,089.14.