ISLAMABAD: Global gold prices continued to fall on Wednesday, as expectations of a US interest rate hike strengthened the dollar while investors continued to assess conflicting statements about peace talks between the US and Iran.
Spot gold fell 0.5 percent to $4,087.68 an ounce, its lowest since June 11. Similarly, US gold futures for August fell 1.1 percent to $4,105.40 an ounce.
The dollar reached its highest level in more than a year, making gold more expensive for overseas buyers and putting pressure on demand.
On the other hand, uncertainty remains regarding the ongoing talks between the US and Iran. US President Donald Trump claimed that Iran has agreed to allow inspections of nuclear facilities for an indefinite period, but Tehran denied this claim, saying that no such concessions were made in the talks.
There is also growing market expectation that the US Federal Reserve could raise interest rates three times this year. Investors are now awaiting the release of US personal consumption expenditure data on Thursday, which is considered a key indicator of inflation and will provide clues about future monetary policy.
Meanwhile, silver fell 1.1% to $61.36 an ounce, platinum fell 0.9% to $1,637.34 and palladium fell 1.2% to $1,223.29 an ounce.
