Gold prices fell on Tuesday under pressure from a stronger dollar, while the prospect of higher US interest rates for a longer period also weighed on the attractiveness of the non-yielding precious metal.
Gold fell 0.3 percent to $1,732.10 an ounce by 0736 GMT in immediate trade, after hitting a one-month low of $1,719.56 in the previous session.
The price of American gold decreased by 0.3% to 1744.10 dollars.
The dollar index fluctuated near a two-decade high on Monday.
At a conference of central banks in Jackson Hole, Wyoming, the US Federal Reserve and the European Central Bank took a tough stance, pledging to do everything possible to rein in relentlessly rising inflation, even if growth is adversely affected.
While gold is considered a safe haven in times of economic uncertainty, higher interest rates increase the opportunity cost of holding gold.
Markets are preparing for a possible 75 basis point rate hike at the Federal Reserve’s September meeting.
Among other precious metals, silver fell 0.2 percent to $18.72 an ounce. Platinum fell 1.2 percent to $853.63 and palladium rose 0.1 percent to $2,149.53.
Source: Lebanon Debate
