By Bharat Gautam

(Reuters] – The price of gold rose as concern about U.S. economic news rekindled interest. But, the Federal Reserve’s aggressive rate hikes are likely to cause the metal to drop its most significant monthly fall since September.

The price of an ounce was 0.3% higher at $1899.00, according to 0247 GMT. But, this month, has lost about 2%. U.S. prices were 0.6% higher at $1,902.10.

According to DailyFX currency strategist Ilya Spivak: “The disappointing U.S. GDP figure could put some pressure on the Fed not tighten as aggressively as it had hinted.”

The dollar has fallen a bit because of this. Spivak said that he didn’t think these moves would continue.

Fed officials agreed to speed up interest rate increases this year. However, they are divided on the issue of whether to stop the economy from spiraling into recession.

Holding zero-yield bullion is more expensive due to higher U.S. short-term interest rates and bond yields.

The dollar has strengthened and gold prices are set to see the largest percentage fall in monthly price since September 2021.

Greenback-priced greenback gold is less appealing to other currency holders if the dollar is stronger. In the last session, the dollar held steady at a high of 20 years against its rivals. [USD/]

“The U.S. Dollar, also known as the freight train, is going to have to slow down sometime soon,” Matt Simpson, City Index’s senior market analyst, said. That could be good news for gold, Matt Simpson from City Index, a trading company’s senior market analyst said in a note.

Spot silver rose 0.1% to $23.16 an ounce while platinum fell 0.5% at $915.19 and palladium rose 0.5% up to $2,243.74 There were no monthly falls.