Gold loses its luster and records a 30-month low
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| Gold loses its luster and records a 30-month low |
Gold prices on Wednesday hit a new low of the lowest in 30 months, as the attractiveness of the precious metal was undermined amid a rising dollar and U.S. Treasury yields due to expectations that the Federal Reserve (U.S. Central Bank) will raise interest rates more sharply.
By 08:54 GMT, gold in spot transactions fell 0.1% to $1,626.79 per ounce, after hitting the lowest level since April 2020 at $1,613.60 earlier in the session.
U.S. gold futures fell 0.1% to $1653.10.
The dollar, the rival safe haven for gold, hit a new high in two decades, hurting demand for dollar-denominated gold from buyers in other currencies, and rising global interest rates fueled stagnant fears in financial markets.
Gold has not been able to benefit from the recent collapse of stocks, as high-interest rates have increased the opportunity cost of holding the precious metal that does not generate returns.
Gold has also been hit by the 10-year rise in U.S. Treasury yields to its highest level since October 2008.
For other precious metals, silver fell 1.2% to $18.21 an ounce after falling to a three-week low of $17.94 earlier in the session.
Platinum 0.9% fell to $ 840.03 after earlier hitting the lowest level since September 5.
Palladium fell 0.7% to $2,073.03.
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