Gold is at its lowest level in 3 weeks, with rise of dollar and bond yields

Gold prices hovered at a three-week low on Thursday, pressured by the rise in the dollar and the yield on Treasury bonds, amid fears that the Federal Reserve will continue to raise interest rates by a significant amount.

And by 0049 GMT, gold fell in spot transactions 0.1 percent to $ 1627.04 an ounce. Prices hit their lowest since Sept. 28 earlier in the session at $1,624.98 an ounce.

Gold futures fell 0.1 percent to $1,632.60 an ounce.

The dollar index was stable after rising 0.8 percent on Wednesday, while the yield on US 10-year Treasury bonds reached their highest level since mid-2008.

The latest data revealed that inflation continues to rise, well above the central bank’s target of about 2 percent. This news had little effect in changing expectations for a fourth rate hike by 75 basis points next month.

As for other precious metals, silver fell in spot transactions 0.4 percent to $18.36 an ounce. Platinum fell 0.6 percent to $878.52 an ounce. And palladium fell 0.6 percent to $ 1988.78 an ounce.