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Gold rises on fear of US interest rates rise


Gold price is down on the day after falling from a high of $1,935 to a low of $1,912.82 with the market getting behind the US Dollar and US yields.


Gold prices fell to the lowest in three months on Thursday as investors fear that US interest rates will rise as the central bank looks to slow the US economy to lower inflation. Fed's Chairman Jerome Powell addressed the Senate Banking Panel and repeated that interest rates are likely to continue on an upward path and that no cuts to rates are coming anytime soon.


The US Dollar, as measured by the DXY index, is currently higher by 0.33% and has travelled between a low of 101.921 and 102.467 so far, The move higher is making gold more expensive for international buyers. Bond yields also moved up which is bearish for gold since it offers no interest.



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