Gold Rises After Heavy Sales Due to The Tendency of The Fed to Tighten Monetary

Gold prices rose on Thursday, recovering some of the losses incurred in the previous session after the US Federal Reserve hinted that it may raise interest rates earlier than expected.

And gold rose in spot transactions 0.5% to $ 1820.34 an ounce (an ounce). US gold futures fell 2.1% to $1,822.

Gold prices fell more than 2.5% on Wednesday, reaching their lowest level since May 6, after tightening monetary comments by US central officials lifted the dollar to a two-month high, while US Treasury yields jumped.

On Wednesday, the Fed began closing the door to a pandemic-driven monetary policy, as 11 out of 18 bank officials expected at least two quarter-point interest rate increases in 2023.

Gold is considered a hedge against inflation, but the US Central Bank’s increase in interest rates will increase the opportunity cost of acquiring the yellow metal that does not generate returns and reduce its attractiveness.

As for other precious metals, silver gained 0.4% to $27.08 an ounce, while palladium fell one percent to $2,769.98 and platinum fell 0.2% to $1,120.77.