Gold falls while dollar rises and US inflation data awaited
Gold prices fell today, helped by a slight rise in the dollar as investors anticipated inflation data in the United States, due out this week, which could influence the Federal Reserve’s (US Federal Reserve) decision to hike interest rates.
And gold was down 0.3 percent in spot trading to $1669.73 an ounce (one ounce) by 06:15 GMT. Prices hit a three-week high in the previous session, helped by a weak dollar.
US gold futures fell 0.5% to $1,672.70.
The dollar index rose 0.2 percent, making the precious metal more expensive for overseas buyers.
The US CPI report is expected on Thursday.
Gold is seen as a hedge against inflation, but higher interest rates make the non-yield metal less attractive.
Investors are also focused on the US midterm congressional elections later today which will determine which party will dominate Congress and could drive moves across markets.
Along with other precious metals, silver fell 1 percent in spot trades to $20.56. Platinum fell 0.4 percent to $975.19 and palladium fell 0.5 percent to $1,887.17.
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