Gold prices slip on stronger US dollar

Gold prices declined today, Aug. 15, amid a rise in the US dollar index, concerns about the pace of the Federal Reserve’s interest rate hike and the stuttering Chinese recovery.

Gold futures for December delivery shed 0.73% to $1,802.2 an ounce at 11:13 am Makkah time. Similarly, spot prices fell 0.83% to $1,787.4 per ounce.

Likewise, silver futures for September delivery weakened 0.98% to $20.64 an ounce. The spot price for platinum also tumbled by 1.51%, with the spot price of palladium also down 1.26% to $2,200.97 per ounce.

The main dollar index, which measures the performance of the US currency against a basket of six currencies, gained 0.31% to 105.955 points.

On Aug. 12, Richmond Fed President Thomas Barkin said the central bank needs to keep raising interest rates until inflation is tamped down to its 2% target, Bloomberg reported.

Investors are anticipating this week minutes of the Fed’s July meeting, due on Aug. 17, which may provide clues to conditions that could push the central bank to tighten monetary policy again in Sept.