Gold prices recorded a decline today, Monday, as it recorded the largest monthly decline since September, while the markets expect to raise the US interest rate on the back of economic data, and it is worth noting that the rise in the dollar affected the price of gold.
And according to Arab Net, gold in spot transactions fell 0.2% to $ 1787.70 an ounce, and US gold futures fell 0.1% to $ 1789.20.
The US Federal Reserve plans to raise interest rates in March, assuming that the economy is not significantly affected by the spread of the mutated Omicron from the Corona virus, and that it continues to grow at a healthy pace, according to Reuters.
Although gold is a hedge against inflation, raising interest increases the opportunity cost of holding the precious metal, which does not generate returns.
The dollar index hovered around 18-month highs on Friday as traders awaited central bank meetings in Australia, Britain and the European Union. The rise of the dollar makes gold more expensive for holders of other currencies.
As for other precious metals, the price of silver in spot transactions fell 0.3% to $22.36 an ounce.
Platinum rose 0.5% to $1012.99 an ounce, and palladium settled at $2,377.42 an ounce, but it is on track to achieve a monthly gain of 25% at its best level since February 2008.
