Gold near its lowest level since December as the dollar rises

Gold prices fell to near seven-month lows on Wednesday, as the dollar’s strength and expectations of a rate hike hurt the non-yielding metal.

Spot gold fell 0.2 percent to $1,760.90 an ounce by 1053 GMT, after dropping about 2.6 percent on Tuesday. US gold futures fell 0.3 percent to $1,759.00 an ounce.

The price of the dollar, which rivals gold as a safe haven for value, rose close to its highest levels in 20 years, making dollar-denominated gold less attractive to buyers in other currencies.

Gold has faced the effects of higher interest rates and bond yields globally, which increases the opportunity cost of acquiring the metal.

Major central banks raised interest rates in June by more than they did in the past 20 years, according to Reuters calculations. With inflation still rising to its highest levels in decades, the rate hike is not expected to stop this year.

As for other precious metals, silver fell in spot transactions 0.2 percent to $ 19.15 an ounce, and platinum fell 0.9 percent to $ 867.71. And palladium rose 0.8 percent to 1947.82 dollars.