Comex gold contract Delivered in Feb. It fell $5.10, or 0.3%, at $1,805.80 an ounce.
Gold prices have fallen about 5% from the start of this year and are likely to hit a record decline this year, the most since 2015.
In addition, gold prices were also pressured by the dollar’s appreciation. and the rebound in US government bond yields
A stronger dollar will reduce the attractiveness of gold. by making gold contracts more expensive for holders of other currencies.
As the rebound in US Treasury yields increases the opportunity cost of holding gold. Because gold is an asset that does not return in the form of interest.
The dollar was boosted by expectations that the Federal Reserve may raise interest rates as early as March 2022. And it will raise interest rates three times next year to curb the spike in inflation.