The price of gold fell with the rise of the dollar

Gold prices fell on Monday, July 25 after the dollar’s rise and expectations of a US Federal Reserve interest rate hike this week dampened gold demand.

The price of gold fell 0.2% to $ 1724.50 an ounce as of 04:23 GMT, after rising to its highest level in more than a week on Friday.

And US gold futures fell 0.5% to $ 1718.70 an ounce.

The dollar rose 0.1% against rival currencies, making dollar-denominated gold more expensive for buyers holding other currencies.

The US Federal Reserve concludes its two-day meeting on Wednesday.

Although gold is seen as a hedge against inflation, higher interest rates increase the opportunity cost of holding it.

On Sunday, US Treasury Secretary Janet Yellen said US economic growth was slowing and acknowledged the risk of a recession, but added that a recession is not inevitable.