Dollar Surge Puts Downward Pressure on Gold and Silver Prices
The US dollar surged to its strongest level in about two months as investors continued to bet on a September rate hike by the Federal Reserve, according to Kitco.
This move put downward pressure on gold and silver prices, with spot gold trading near $4,308.40 an ounce, down 1.12% on the session, while spot silver was trading near $65.00, down 2.88%.
The rise in the dollar index to 100.79 in early European trade also contributed to the decline in precious metals prices as investors became more confident of a higher-for-longer interest rate scenario.
Meanwhile, oil prices extended their decline after Saudi Arabia restarted operations at its East-West Pipeline and traders weighed the possibility of US-Iran diplomacy around the United Nations General Assembly. Brent crude was near $98.16 a barrel, while WTI was near $89.01 in early trade.