Gold loses its luster and hits its lowest level in 30 months

On Wednesday, gold prices hit a new low, the lowest in 30 months, as the allure of the precious metal was undermined amid the rise in the dollar and US Treasury yields due to expectations of a sharper rate hike by the Federal Reserve.

By 0854 GMT, spot gold fell 0.1 percent to $ 1626.79 an ounce, after recording its lowest level since April 2020 at $ 1613.60 earlier in the session.

US gold futures fell 0.1 percent to $1,653.10.

The dollar, a safe haven competitor to gold, recorded a new high in two decades, damaging the demand for dollar-denominated gold from buyers dealing in other currencies. High global interest rates fueled recession fears in financial markets.

Gold has not been able to benefit from the recent stock collapse, as high-interest rates have increased the opportunity cost of holding the non-returning precious metal.

Gold was also hit by the 10-year US Treasury yields rising to their highest level since October 2008.

As for other precious metals, silver fell 1.2 percent to $ 18.21 an ounce, after falling to a three-week low of $ 17.94 earlier in the session.

Platinum fell 0.9 percent to $ 840.03, after hitting its lowest level since Sept. 5.

Palladium fell 0.7 percent to $2,073.03.