Chicago (ANTARA) – Gold prices fell in late trading on Tuesday (Wed 07/09/2022, WIB), falling from strong gains in the previous session as a stronger US Dollar turns the metal yellow less attractive to investors holding other currencies.

The most active gold contract for December delivery on the New York Stock Exchange’s Comex division fell $9.70, or 0.56%, to close at $1,712.90 an ounce. The Comex Exchange is closed on Monday (09/05/2022) for the Labor Day holiday in the United States.

Gold futures jumped $13.30, or 0.78%, to $1,722.60 on Friday, after losing $16.90, or 0.98%, to $1,709.30 Thursday 9/1/2022), and slid US$10.1, or 0.58%, to US$1,726.20. dollars on Wednesday (8/31/2022).

The rally in the dollar index appeared to continue on Tuesday (6/9/2022), as traders awaited more details on the trajectory of US monetary policy and expectations of further interest rate hikes by the Federal Reserve kept the dollar supported around 20-year highs.

The dollar index, which measures dollar against a basket of six other major currencies, it rose 0.35% to 110.2140.

Rising interest rates have weighed heavily on gold prices this year as traders seek better yields on the dollar and government bonds. The Fed is also expected to maintain the pace of rate hikes this month.

Markets are also awaiting interest rate decisions from the Canadian Central Bank and the European Central Bank.

Meanwhile, economic data released on Tuesday (6/9/2022) looked mixed. The Institute for Supply Management (ISM) reported that the U.S. services Purchasing Managers’ Index (PMI) stood at 56.9% in August, up 0.2 percentage points from 56 .7% of July.

The Global S&P’s U.S. services PMI fell to 43.7 in August from 47.3 in July, below an initial reading of 44.1 and the lowest level since May 2020.

Another precious metal, silver for December delivery, rose 2.7 cents, or 0.15%, to close at $17.908 an ounce. Platinum for October delivery rose $15.6, or 1.91%, to close at $833.90 an ounce.

Also read: Gold jumps $13.3

Also Read: Gold Drops $16.90, Extends Losses

This news was broadcast on Antaranews.com with the title: Gold drops $9.70 under pressure from a stronger US dollar