Gold prices fell on Wednesday, with the dollar and Treasury yields rising after upbeat economic data boosted expectations that the US Federal Reserve will continue to raise interest rates sharply.
Spot gold fell 0.5% to $1,692.99 an ounce by 3:30 GMT, having earlier fallen to its lowest level in a week. US gold futures fell 0.6% to $1,703.30.
Strong US service sector data boosted the dollar, and the dollar index jumped to a 20-year high, making gold more expensive for overseas buyers.
And US Treasury yields for ten years rose to their highest levels since June 16, amid expectations that the Federal Reserve will continue to raise interest rates. Higher returns increase the opportunity cost of acquiring non-returnable gold.
The Fed is expected to raise interest rates by 75 basis points on September 21.
The US Federal Reserve has raised interest rates by 225 basis points in total since March; To curb soaring inflation.
