Gold becomes cheaper & Dollar becomes expensive

ISLAMABAD: Gold prices have fallen in the global market, mainly due to the strength of the US dollar and expectations of a possible increase in interest rates.

Spot gold fell 0.3 percent on Friday to $4,527.60 per ounce, while prices also recorded a slight decline on a weekly basis. Similarly, US gold futures were also trading down 0.3 percent to $4,529.10 per ounce.

According to experts, a strong US dollar makes gold expensive for holders of other currencies, which affects demand. Analysts say that high interest rates around the world are also putting pressure on gold prices.

Meanwhile, Marco Rubio indicated some positive progress in negotiations with Iran, however, uranium reserves and control of the Strait of Hormuz are still among the main disputes.

Rising oil prices have raised inflation concerns, fueling expectations that the US central bank, the Federal Reserve, will raise interest rates further.

According to market data, the probability of an interest rate hike by the end of the year has reached about 60%.

On the other hand, Donald Trump’s announcement that Kevin Voorsch will be sworn in as Fed Chairman is also the focus of investors’ attention.

Among other precious metals, silver fell 0.2%, but is expected to rise on a weekly basis, while platinum and palladium prices also fell.