Gold jumps 1% amid dollar weakness and rate hike fears

Gold prices jumped 1 percent on Tuesday as the dollar weakened, although the Federal Reserve’s expectations of a further interest rate hike kept the precious metal near its lowest level in two and a half years.

And the price of gold in spot transactions increased by 1.1 percent to 1639.94 dollars an ounce by 0726 GMT. On Monday, prices hit their lowest level since April of 2020, at $1,620.20 an ounce.

US gold futures rose 0.9 percent to $1,647.70.

The dollar index fell 0.4 percent, after hitting a two-decade high in the previous session. The 10-year Treasury yield has also fallen from its 12-year peak on Monday.

On Monday, US central bank officials downplayed the increased volatility in global markets and said their priority remained controlling inflation.

Gold prices have fallen by 20 percent since rising above the $2,000 mark in March.

As for other precious metals, the price of silver in spot transactions jumped by two percent to $ 18.70 an ounce, platinum rose by 0.9 percent to $ 860.00, and palladium rose by 0.7 percent to $ 2060.01.