Gold prices stabilize on US dollar decline

Gold prices stabilized today, June 14, as the US dollar retreated to its lowest level in four weeks, albeit still constrained by potential interest rate hikes and signals of tightening monetary policy from the Federal Reserve.

Gold futures for August delivery settled at $1,830.90 an ounce at 11:27 am Makkah time, while spot prices rose 0.54% to $1,829.51 an ounce.

Elsewhere, silver futures for July delivery reached $21.25 an ounce. In addition, the spot price of platinum hit $935.50, while the spot price of palladium gained 1.68% to $1,827.18.

The main dollar index, which measures the performance of the US currency against a basket of six currencies, dropped 0.45% to 104.72 points.

Goldman Sachs Group sees the Federal Reserve raising interest rates by 75 basis points (bps), instead of the previously expected 50 bps. Economists on Wall Street also expect successive rate hikes of 75 bps in both June and July, followed by a 50-bps increase in September and 25 bps in each of November and December.

A monetary policy decision is expected from the Federal Reserve tomorrow, Wednesday, in order to determine the central bank's plan for easing inflation, which accelerated in May to its highest level since 1981 to 8.6%.