Gold prices decline with the stability of the dollar

Gold prices fell on Tuesday as the dollar stabilized, but expectations that the Federal Reserve would slow the pace of interest rate hikes limited the precious metal’s losses.

Spot gold fell 0.5% to $1,640.62 an ounce by 1238 GMT, while US gold futures fell 0.6 percent to $1,644.70.

The dollar index stabilized somewhat with the decline of the Chinese yuan, and recovered slightly after falling in the previous session to its lowest level since the sixth of October.

Currency gains reduce the attractiveness of gold to buyers of other currencies.

Higher interest rates increase the cost of non-yielding gold, while boosting dollar and bond yields.

As for other precious metals, silver fell in spot transactions by 2.2 percent to $ 18.84 an ounce, and platinum fell by two percent to $ 906.73 an ounce, while palladium fell 3.6 percent to $ 1898.53 an ounce.