Gold strengthens its position as dollar declines

Gold prices rose on Tuesday on a weaker dollar, although lingering concerns about the Federal Reserve’s interest rate hike kept non-profit metals’ gains in check.

Spot gold rose 0.3 percent to $1,791.91 an ounce by 0636 GMT, and US gold futures rose 0.1 percent to $1,800.20 an ounce.

And the dollar index fell by 0.3 percent in light of the appreciation of the Japanese yen after the Bank of Japan said it would adjust the policy of controlling the profit curve. A falling dollar makes gold more attractive to buyers outside the United States.

Although gold is considered a hedge against inflation, higher interest rates raise the opportunity cost of holding bullion.

As for other precious metals, spot silver rose 0.4 percent to $23.04 an ounce, and platinum rose 0.4 percent to $983.25, while palladium rose one percent to $1,685.16.