Gold prices fell due to higher interest rates, also dollar
The price of gold fell on Thursday and is expected to fall a fifth monthly against the backdrop of high interest rate expectations, while the dollar also fell.
Gold is currently trading in the support area at 1,200.00 per ounce at 6:45 GMT.
Markets widely expect the Federal Reserve to raise interest rates in September and December after the Jackson Hole seminar last week, where Federal Reserve Chairman Jerome Powell defended the policy of raising interest rates, adding that he expected a slow but gradual growth in interest rates as inflation reached a target Country 2%.
Powell’s speech came after US President Donald Trump said earlier this month that he was “unenthusiastic” about the Fed’s decision to raise interest rates. A possible rise in interest rates generally leads to a drop in demand for gold, which does not lead to any interest.
Meanwhile, the United States announced on Wednesday its strongest second-quarter GDP growth in a decade, expanding at an annual rate of 4.2%.
Daniel Heinz, an analyst at ANG, said: “Investors are grappling with positive data coming from the US and this is why gold prices are above $ 1200 at the moment without any clear expectations for interest rates for 2019.” .
The dollar index, which tracks the greenback against a basket of currencies, fell 0.03% to 94.57. The index rose slightly from a four-week low of 94.45 on Tuesday.