for Arundhati Sarkar
Nov 23 (Reuters) – Gold fell below $1,800 on Tuesday as the dollar rose and the return on U.S. government debt rose, with higher expectations of a hike in U.S. interest rates in 2022 following the nomination of the U.S. dollar. Term for a new chairman of the Federal Reserve.
* At 1022 GMT, spot gold was down 0.4% at $1,797.16 an ounce, while US gold futures were down 0.5% at $1,797.70.
* The dollar index hit a new 16-month high and returns on US Treasury notes strengthened after Jerome Powell was named for a second term as Fed chief, boosting confidence in rising costs. of credit in the United States during 2022.
* While gold is considered a hedge against inflation and other uncertainties, a potential rate hike to curb rising consumer prices would increase the opportunity cost of owning non-interest bearing bullion.
* However, “it is too early to rule out gold,” said independent analyst Ross Norman.
* “Inflation still has legs to walk and again Europe has restrictions due to COVID-19. However, the onus lies with the bulls to test their point and find support, otherwise the metal could go down again “, added.
* The rise in COVID-19 cases in various parts of Europe, which is creating new restrictions, has put investors on edge.
* Among other precious metals, spot silver was down 1.1% at $23.89 an ounce; Platinum was down 0.8% at $1,003.59; And palladium was down 0.4% at $1,946.38.
(Reporting by Arundhati Sarkar and Nakul Iyer in Bengaluru; Edited in Spanish by Carlos Serrano)