Gold prices fall to $1,631

Gold fell in price on September 28 morning, the price is slightly above $1,630 per troy ounce, Report informs referring to the auction data.

The price of December futures for gold on the New York Comex exchange fell by $5.05, or 0.31%, to $1,631.15 per troy ounce. December silver futures fell 1.11% to $18.133 an ounce.

The dollar index (the exchange rate against a basket of currencies of six countries - US trading partners) grew by 0.52%, to 114.7 points. A stronger dollar makes gold less accessible to investors holding other currencies.

At the same time, the yield of US government bonds also increased. Thus, the yield on ten-year US government bonds (US Treasuries) rose to 3.984% from the level of the last close of 3.963%. At the same time, the indicator reached exactly 4%, for the first time since October 2008. US government bonds are an alternative investment to gold, so their quotes, as a rule, have multidirectional dynamics.

Commodity strategists at TD Securities expect gold prices to drop below $1,600 in the next stage of the rate hike cycle, Bloomberg reports, as traders speculate that high rates will continue for some time.