Gold prices fall as dollar rises amid follow-up statements of Fed officials

Gold prices fell on Tuesday due to the rise of the US dollar, amid the follow-up statements of Federal Reserve officials and the latest developments in discussions of the debt ceiling crisis.

St. Louis Federal Reserve Bank President, James Bullard, said that higher inflation this year may create a new psychological acceptance of pricing, as companies and consumers become accustomed to higher prices.

In a separate context, US President Joe Biden attacked Republicans in the Senate for obstructing efforts to raise the debt ceiling, describing them as "hypocritical and dangerous”.

Gold futures contracts for December delivery fell 0.4% to reach $1,760.50 per ounce at 10:30am Makkah time. Spot price for the yellow metal fell 0.5% to reach $1,760.48 per ounce.

Elsewhere, silver futures for December delivery fell 0.1% to reach $22.62 an ounce. Spot price for platinum delivery fell 0.5% to reach $964.09, while palladium increased 1.4% to reach $1,901 per ounce.

The dollar index, which measures the performance of the US currency against a basket of six currencies, rose by 0.2% to reach 93.965 points.