Gold prices drop to their lowest level since May 5

Gold prices fell more than 2% during today's session, after the US Federal Reserve hinted that it may raise interest rates earlier than expected.

And gold fell in spot transactions 1.6 percent to $ 1782.86 an ounce by 1353 GMT, after touching its lowest level since May 5 at $ 1775.40 an ounce.

US gold futures also fell 3.9% to $ 1788.30.

The announcement sent the dollar to a two-month high and a jump in bond yields, which added to the pressure on gold.

Increasing bond yields raises the opportunity cost of holding non-yielding gold.

"The Federal Reserve's chart shows a clear change in tone, ultimately indicating that although the Federal Reserve continues to emphasize that inflation is temporary, its assessment The official risk to the economy is decisively tighter.

Ghali added that the weak demand in the present market and the slowdown in speculative activity on gold, which started before the monetary policy meeting of the Federal Reserve, may also create room for further decline of the precious metal.

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