Gold falls with the rise of the dollar and fears of raising US interest rates

Gold prices fell on Monday as the dollar rebounded amid expectations that the Federal Reserve will raise interest rates sharply, adding to pressure on the yellow metal.

And gold fell in spot transactions 0.6 percent to $ 1791.33 an ounce by 0704 GMT, after rising by about 1.6 percent last week. US gold futures fell 0.5% to $1,807.30.

The dollar erased earlier losses, climbing 0.2 percent against its rivals, making gold more expensive for buyers holding other currencies.

Investors are awaiting the minutes of the Federal Reserve’s latest monetary policy meeting, due on Wednesday, for more clues to a future rate hike.

Although gold is considered a hedge against inflation, rising US interest rates limit the attractiveness of the non-yielding yellow metal.

As for other precious metals, silver fell in spot transactions by 1.2 percent to $ 20.57 an ounce, and platinum fell 1.3 percent to $ 950.37, while palladium settled at $ 2222.23.