Gold prices fell In volatile trading on Wednesday, after the Federal Reserve signaled an increase in interest rates sooner than expected and reduced its bond purchases by the middle of next year.
And the cnbc Arabic channel website stated, that gold in spot transactions fell 0.4% to $ 1767.38 an ounce in the late trading session, while US gold futures fell 0.6% to $ 1767.80.
Federal Reserve Chairman Jerome Powell said that reducing Bond purchases It could happen by mid-2022.
A statement from the central bank also indicated that this was followed by faster-than-expected increases in interest rates.
Gold is considered a hedge against rising inflation, but the Federal Reserve’s raising of interest rates may reduce the attractiveness of gold because it increases the opportunity cost of holding the precious metal, which does not generate returns.
Following Powell’s comments, the dollar index rose against rival currencies, which makes gold more expensive for holders of other currencies.
Among other precious metals, palladium jumped 5.9 percent to $ 2017.94 an ounce, recording the best one-day performance since May 2020, while platinum rose 4.4 percent to $ 995.27 and silver increased 0.9 percent to $22.67 an ounce.