Commodities Update — Gold slips to near one-year low; Corn drops, wheat firm; Copper retreats

RIYADH: Gold prices fell on Thursday to their lowest in nearly a year, as prospects of more interest rate hikes by major central banks to combat soaring inflation weighed on bullion’s appeal.

Although gold is seen as a hedge against inflation, rising interest rates increase the opportunity cost of holding bullion, which pays no interest.

Spot gold was down 0.3 percent at $1,691.84 per ounce by 0313 GMT, after falling to its lowest since early August 2021 at $1,689.40 earlier in the session.

US gold futures fell 0.6 percent to $1,690.40 per ounce.