Gold prices have seen a decline in the global market due to the strength of the US dollar and the increase in Treasury yields, while silver and other precious metals have also been under pressure.
Gold prices have seen a decline in the global market on Wednesday, the main reason for which is attributed to the increase in US Treasury yields and the strength of the US dollar. Spot gold prices fell by 0.7% to $ 3,979.41 per ounce, while in the previous session, it had dropped to $ 3,942.99 per ounce, which is said to be its lowest level since November. US gold futures also traded at $ 3,992.70 per ounce after a decline. Yesterday, gold also recorded its biggest quarterly decline in 13 years, while the price trend continued for the fourth consecutive month.
According to experts, the strength of the US dollar and the rise in Treasury yields are continuously putting pressure on gold prices. According to market analyst Ilya Spivak, high yields and a strong dollar are the main reasons for the decline in gold prices. The Federal Reserve’s possible tight monetary policy is also affecting the market. Cleveland Fed President Beth Hammick has indicated that if inflation does not decrease, interest rates may be increased further.
The market is showing about 67% chances of an interest rate increase in September, while investors are waiting for important economic data related to US employment. At the same time, crude oil prices have increased due to global political tensions, especially tensions between Iran and the United States, which have increased uncertainty in the market. On the other hand, the price of silver also fell 1.4% to $57.75 per ounce. Platinum fell 0.6% to $1,542, while palladium traded 0.4% lower at $1,199.34 per ounce.
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