Gold is stable with the decline in the dollar and treasury bond yields

Gold prices stabilized on Thursday due to a slight decline in the dollar and Treasury yields, but gains remained limited due to signs of the strength of the US economy, which may allow the Federal Reserve to raise interest rates again.

And by 0920 GMT, spot gold rose 0.1 percent to $ 1838.59 an ounce, after hitting its lowest level since early January on Wednesday. US gold futures rose 0.2 percent to $1,848.50.

The standard 10-year US Treasury yields fell, and the dollar fell 0.3 percent against competing currencies after reaching the highest level in nearly six weeks on Wednesday, making gold cheaper for holders of other currencies.

Gold prices fell 4.6 percent this month and are heading for their biggest monthly decline since June 2021 if losses continue.

Strong retail sales figures released on Wednesday, along with data released on Tuesday showing inflation continued to rise in the US last month, reinforced fears that the Federal Reserve will keep interest rates higher for longer.

A number of Federal Reserve policymakers indicated this week that more increases are needed to bring inflation down to the central bank’s 2 percent target.

High interest rates discourage investing in gold, which does not yield a return, although it is considered a hedge against inflation and economic uncertainty.

As for other precious metals, spot silver rose 0.3 percent to $21.68 an ounce. Platinum rose 0.1% to $915.90, and palladium fell 0.2% to $1,461.23.