Gold fell today, Friday, after rising inflation in the United States in March supported the dollar and boosted bets on a hike in interest rates next week, but banking sector concerns kept bullion on a path of a slight monthly increase.
And by 1350 GMT, spot gold fell 0.3% to $1982.65 an ounce, but it remained up 0.8% for the month. US gold futures fell 0.4% to $1,991.30, according to Reuters.
US core consumer spending, the Fed’s preferred measure of inflation, rose 0.3% in March, the same as in February, in line with expectations, with dealers raising bets on an interest rate hike next week.
Reuters indicated that raising interest rates weakens the attractiveness of gold bullion, noting at the same time that the dollar maintained its gains after inflation data, but headed towards a monthly decline. A weaker dollar makes bullion cheaper for overseas buyers.
Gold rose to the highest level in a year when the price of an ounce reached $ 2048.71 in mid-April with the spread of the banking crisis. It is also being watched over developments surrounding the US debt ceiling.
As for other precious metals, silver fell 0.6% to $24.80 an ounce, platinum fell 0.9% to $1067.85, and palladium rose 1.1% to $1511.32, all heading towards a second monthly increase.
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