CHICAGO: Gold futures on the COMEX division of the New York Mercantile Exchange dropped on Tuesday as the US currency strengthened.
The most active gold contract for December delivery dropped by $6.10, or 0.31%, to close at 1,970.00 dollars per ounce.
The rise of US Treasury’s bond yields further affected gold, Xinhua reported.
Putting Down Inflation in US
Federal Reserve Governor Michelle Bowman said in remarks prepared for delivery to the Kansas Bankers Association, that the Federal Reserve will possibly require to raise interest rates further to control inflation.
Bowman said she supported the Federal Reserve’s quarter-point increase in interest rates in July and expected that further rate increases would possibly be needed to get inflation on a path down to the Federal Reserve’s 2% target.
John C. Williams, New York Federal Reserve President, said in an interview with US media that interest rates were high enough to put downward pressure on inflation.
He said that monetary policy was in a good place. The bank has got policy where it needs to be.
