The strength of dollar plunged gold to its lowest level in 5 weeks

Gold prices fell on Monday, August 14, to their lowest level in more than five weeks, after the dollar and bond yields rose, ahead of the upcoming publication this week of the minutes of the US Federal Council meeting for the month of July, which may provide indications that will guide the expectations of interest rates in the future.

Spot gold fell 0.1% to $1,912.29 an ounce by 06:13 GMT, its lowest since July 7. US gold futures fell 0.1% to $1944.20.

US bond yields rose, pushing the dollar to its highest level since July 7, after data on Friday showed producer prices rose slightly more than expected in July, while services prices rose at the fastest pace in nearly a year.

Higher interest rates and Treasury yields increase the opportunity cost of holding non-yielding gold that is priced in dollars.

As for other precious metals, spot silver fell 0.4% to $22.59 an ounce, a rate not recorded since July 6th. Platinum fell 0.5% to $908.02, while palladium settled at $1,293.29.