Gold prices fell on Wednesday, September 28, as the dollar and U.S. Treasury yields rose to their highest levels in several years following hawkish comments from Federal Reserve officials that reinforced expectations of a sharp interest rate hike.

By 04:04 GMT, spot gold fell 0.3% to $1,624.12 an ounce, approaching the lowest level in two and a half years of $1,620.20 touched earlier this week.

U.S. gold futures declined 0.3% to $1,631.60.

Dollar Index and Bond Yields

The dollar index rose to a new 20-year high, making gold priced in U.S. dollars more expensive for buyers holding other currencies.

U.S. 10-year Treasury yields increased to 4% for the first time since 2010.

Other Precious Metals

As for other precious metals, spot silver fell to a three-week low, recording in the latest trades a decline of 1.4% to $18.17 an ounce.

Platinum dropped 0.7% to $842.52 after earlier hitting its lowest level since September 5.
              
Palladium declined 1.2% to $2,061.31.