Gold falls for the fifth month as investors await rate hike

Gold prices fell on Wednesday for the fifth consecutive month as strong US economic data and comments from the Federal Reserve about monetary tightening indicated further interest rate hikes, reducing the attractiveness of the non-yielding yellow metal.

Spot gold prices fell 0.1 percent to $1,721.59 an ounce by 0735 GMT, reaching its lowest level since July 27, when it recorded $1,718.70 an ounce.

US gold futures fell 0.2 percent to $1,733.10 an ounce.

New York Federal Reserve Chairman John Williams said on Tuesday the US central bank would likely need to bring its policy rate “somewhat above” 3.5 percent and keep it there until the end of 2023.

The latest data, which revealed an increase in the number of US jobs in July, and a return in consumer confidence that exceeded expectations in August, contributed to strengthening expectations that the Federal Reserve will continue to adhere to its monetary policy tightening.

Among other precious metals, spot silver fell 0.7 percent to $18.37 an ounce, declining more than nine percent in August, recording its biggest monthly decline since September 2020.

Platinum settled at $847.45, but it is heading towards a monthly decline of more than five percent. And palladium gained 1.6 percent to $2,121.27 an ounce.