Gold prices fell to a the lowest in three months on Thursday as the dollar and bond yields rose after Federal Reserve chair Jerome Powell told lawmakers interest rates are likely to further rise as the central bank looks to slow the economy to lower inflation.
Gold for August delivery closed down US$21.20 to settle at US$1,923.70 per ounce, the lowest since March 14.
The drop comes as Powell addressed the Senate Banking Panel, telling them that interest rates are likely to continue on an upward path and no cuts to rates are coming soon.
The dollar moved higher, making gold more expensive for international buyers. The ICE dollar index was last seen up 0.34 points to 102.41.
Bond yields also moved up. bearish for gold since it offers no interest. The US two-year note was last seen paying 4.791%, up 7.8 basis points, while the US 10-year note was up 6.5 basis points to 3.79%.
Source: MTN
