Gold is falling due to the rise in USD

Gold fell on Wednesday, after touching a one-and-a-half-month high in the last session, affected by a slight rise in the dollar, despite investors’ expectations that recent US economic readings will convince the Federal Reserve to stop the cycle of raising interest rates.

Spot gold fell 0.1 percent to $1,976.05 an ounce by 0350 GMT, after hitting its highest since May 24 at $1,984.19 on Tuesday.

There was little change in US gold futures contracts at $ 1980.

The dollar index rose slightly after hitting its lowest level in more than a year on Tuesday, making gold more expensive for buyers holding other currencies.

US retail sales increased less than expected last month, rising 0.2 percent, compared to economists’ forecasts of a 0.5 percent rise in a Reuters poll.

According to 106 economists polled by Reuters, the expected rate hike on July 26 to a range of 5.25-5.50 percent may be the last time the Fed raises interest rates in the current monetary tightening cycle.

Lower interest rates reduce the opportunity cost of holding non-yielding gold.

As for other metals, silver fell in spot transactions by 0.1 percent, to $ 25.06, and platinum fell by the same percentage, to $ 982.22 an ounce.

Palladium lost about 1 percent, recording $1,306.97, after rising to its highest level since June 26 at $1,325 on Tuesday.