Gold prices fall due to U.S. dollar price increase

Gold prices have declined on Monday by 0.2 percent to reach $1837.59 per ounce, on rising U.S. dollar price and after recent U.S. economic data raised worries that the Federal Reserve could hike interest rates further.

The American gold futures eased by 0.1 percent to reach $1847.60, according to Reuters, while the dollar index was up 0.2 percent, making greenback-priced bullion less attractive for buyers holding other currencies.

Gold markets are now expecting the Federal Reserve to raise benchmark interests to 5 percent by May and by the prices reaching a peak of 5.3 percent in July.

This prediction is a result of recent data showed an increase in the unemployment rate in the job market, as well as the ongoing inflation.

Gold is considered a security method from the ongoing inflation. However, the rising interest rates is a threat to the interest free metal.

Other valuable metals have faced a decline as well. For instance, silver fell by 0.7 percent to cost 21.58 dollars per ounce, platinum declined by 0.3 percent to be at 914.17 dollars.