Gold is falling as the dollar climbs to a 20-year high

Gold fell on Monday as the US dollar rose to a two-decade high, reducing the attractiveness of dollar-denominated gold to holders of other currencies, while rising US Treasury yields put additional pressure on prices.

And gold fell in spot transactions 0.7 percent to $ 1870.70 an ounce (an ounce) by 0817 GMT, and US gold futures fell 0.8 percent to $ 1867.90.

The dollar rose as investors searched for a safe haven that yields a return due to growing concerns about slowing global economic growth and rising interest rates.

US 10-year bond yields also rose to the highest level since November 2018, putting pressure on the non-yielding yellow metal prices.

While gold is a safe haven and store of value during times of political and economic crisis, it is very sensitive to short-term US interest rates as well as bond yields, which raise the opportunity cost of holding gold.

But a research note by researchers at ANZ argues that concerns about a slowdown in global economic growth, due to the rapid rise in inflation and growing political risks, should protect gold prices to some extent.

As for other precious metals, silver fell in spot transactions 0.6 percent to $22.21 an ounce, platinum fell 1.2 percent to $951.34, while palladium rose 2.4 percent to $2,095.53.

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