Gold is falling amid the dollar’s strength ahead of Fed

Gold prices fell on Tuesday, September 20, under pressure from the stability of the dollar and the rise in US bond yields, at a time when the US Federal Reserve is preparing to announce a major interest rate hike to curb inflation.

And gold fell in spot transactions by 0.4% to $ 1669.80 an ounce at 08:39 GMT, and US gold futures settled at $ 1678.20.

Although gold is considered a hedge against inflation, higher US interest rates increase the opportunity cost of holding non-yielding bullion.

The dollar remains stable near the highest level in two decades, making gold less attractive to the campaign of other currencies. US Treasury bonds’ returns for ten years are near their highest level since 2011.

As for other metals, silver fell in spot transactions by 1.4 percent to $19.34 an ounce, while platinum rose 0.2 percent to $920.56, and palladium fell 2.5 percent to $2173.31.