Gold prices fell significantly and clearly during today’s trading on Wednesday.
This came as the US dollar rose to its highest level in more than a year.
Expectations of a possible US interest rate hike in the coming period have also increased.
Spot gold fell 0.5% to $4,087.68 an ounce.
This marked its lowest level since June 11.
U.S. gold futures for August delivery fell 1.1% to $4,105.40 an ounce.
Dollar Presses Yellow Metal
A stronger dollar usually increases the cost of buying gold for investors who deal in other currencies.
Therefore, demand for the precious metal often declined when the US currency rose, after the fall in gold prices.
Meanwhile, investors continued to follow political developments between the United States and Iran.
U.S. President Donald Trump announced that Iran had agreed to open-ended nuclear inspections, but Tehran denied this, adding to the uncertainty in the markets.
Stay tuned for US inflation data
Investors await the release of US personal consumption expenditure data, the Federal Reserve’s preferred indicator for measuring inflation.
The current forecast indicated that three rate hikes could be implemented this year.
This move could have a direct impact on the movement of gold and global financial markets.
New moves in the global gold market
The Dubai Gold and Commodities Exchange (DGCX) announced the launch of new gold futures contracts for settlement on the same day, with the aim of boosting liquidity and capitalizing on the growing demand for safe-haven assets.
The Ghana Gold Board has also decided to adopt a pricing system linked to the London Metal Exchange Index from July 1, in a move aimed at enhancing transparency and discipline within the market.
Other precious metals declined
The decline was not limited to gold globally, as silver fell by 1.1% to $61.36 an ounce.
Platinum fell 0.9% to $1,637.34, and palladium fell 1.2% to $1,223.29 an ounce.
