Gold price continues to fall. Spot gold fell 0.5 per cent to $4,087.68 per ounce, hitting its lowest level since June 11. U.S. gold futures for August delivery declined 1.1 per cent to $4,105.40. Spot silver fell 1.1 per cent to $61.36 per ounce, platinum lost 0.9 per cent to $1,637.34, and palladium was down 1.2 per cent at $1,223.29.
Why is Gold Price Falling?
Gold extended losses on Wednesday, as bets on U.S. interest rate hikes lifted the dollar, while investors assessed conflicting signals on the U.S.-Iran peace talks. The dollar hit a more than one-year high, making bullion more expensive for overseas buyers.
This comes as U.S. President Donald Trump said on Tuesday that Iran had agreed to nuclear inspections into "infinity," while Tehran said it had made no such concession in negotiations, raising questions about the viability of their fragile peace deal.
U. S Fed Impact, Other Factors
Traders are pricing in three interest rate hikes from the U.S. Federal Reserve this year, according to the CME FedWatch Tool. Investors await the U.S. Personal Consumption Expenditures data, the Fed's preferred inflation gauge, due on Thursday, for further cues on monetary policy.
Dubai's commodities exchange will launch a same-day settlement gold contract, its CEO told Reuters, aiming to tap safe-haven demand and faster trading infrastructure to boost liquidity in the emirate's bullion market.
Ghana's Gold Board is aligning its gold pricing regime with internationally recognised LBMA benchmarks from July 1 while imposing strict caps on purchase prices to tighten market discipline and curb irregular trading, it said on Tuesday.
