Gold prices fell slightly on Tuesday, as investors assessed the expected path of monetary policy in the United States, after data showed a decline in manufacturing activity and amid inflationary risks raised by production cuts from the OPEC + group.
The dollar index rose 0.2 percent, which makes the precious metal more expensive for buyers holding other currencies.
Gold is considered a tool to hedge against inflation, but high interest rates also raise the opportunity cost of holding it, as it does not yield a return.
Oil prices rose as investors turned their attention to the future of demand and the impact of higher prices on the global economy.
Gold prices fell yesterday, Monday, after the OPEC + group announced a sudden reduction in crude oil production at the beginning of the week. However, prices changed direction, rising 1 percent, as the dollar collapsed in the wake of the publication of weak US economic data.
US manufacturing activity fell in March to its lowest level in nearly three years as new orders tumbled and may continue to decline due to tightening credit.
