Gold falls to its lowest level in three and a half months

On Monday, gold prices fell more than one percent to their lowest levels since late January, as the dollar’s strength continued to affect demand for the yellow metal, which is denominated in the US currency.

And gold fell in spot transactions 0.8 percent to $ 1797.82 an ounce (an ounce) by 0815 GMT. US gold futures fell 0.6 percent to $1,797.40 an ounce.

Earlier in the session, gold prices fell 1.4 percent to the lowest level since January 31, recording $ 1786.60 an ounce. On Friday, the yellow metal saw a weekly loss for the fourth consecutive week.

The US dollar consolidated its gains near a two-decade peak as weak data on the Chinese economy hurt cyclical currencies, including the British pound and the Australian dollar, reducing the attractiveness of gold as a safe haven for holders of other currencies.

The US central bank raised interest rates for the first time in the pandemic period in March by 25 basis points as it sought to tighten monetary policy.

Although gold is considered a haven from inflation, it is sensitive to increasing US interest rates in the short term and to increasing bond yields as both factors increase the opportunity cost of holding gold.

As for other precious metals, silver fell 0.2 percent to $21.02 an ounce, and platinum fell 0.5 percent to $934.16 an ounce. And palladium fell 1.3 percent to $ 1918.59 an ounce.