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Gold prices fell on Wednesday with the rise of the dollar, while investors awaited the statement of the monetary policy meeting of the Federal Reserve for the month of May, in search of indications on the expected amount of the next US interest rate hike.
And by 0636 GMT, gold fell in spot transactions 0.5% to $ 1857.39 an ounce, after hitting its highest level since the ninth of May at $ 1869.49 an ounce on Tuesday.
US gold futures fell 0.5% to $1,856 an ounce.
The dollar index rose after hitting its lowest level in a month in the previous session, which makes the dollar-denominated precious metal more expensive for holders of other currencies.
Although gold is considered a hedge against inflation, rising US interest rates in the near term increase the opportunity cost of buying the non-interest-bearing metal.
The US Central Bank’s Open Market Committee will announce the statement of its meeting, which took place on the third and fourth of May, later on, Wednesday.
As for other precious metals, silver fell in spot transactions 0.6 percent to $21.95 an ounce. Platinum fell 0.7 percent to $947.49 an ounce. And palladium rose 0.5% to $ 2015.99 an ounce.
