Gold Prices Have Fallen on the Global Market
This means that the price of gold has fallen below $4,000 for the first time since mid-July.
Gold prices remained stable on Monday after falling by 4.1% last week. On the global market, gold is trading at approximately $3,995 per ounce. This marks the first time since mid-July that gold prices have fallen below the $4,000 level.
One of the main reasons for the decline is the rise in oil prices amid the ongoing conflict in the Middle East. Higher oil prices could increase inflation and prompt the US Federal Reserve (Fed) to keep interest rates elevated. High interest rates may weaken demand for gold.
Investors are currently focused on the Fed's meeting scheduled for October 27–28. Interest rates are expected to remain unchanged. Meanwhile, the possibility of a rate hike in December is also being discussed in financial markets.
Higher-than-expected inflation figures in the United States and rising government bond yields are putting additional pressure on gold prices. On the other hand, ongoing uncertainty in the Middle East continues to support gold's importance as a safe-haven investment.
Among other precious metals, silver remained stable at $53.94 per ounce, while platinum fell by 0.5% to $1,544.97.
Overall, the future direction of gold prices will largely depend on US interest rate policy, inflation data, and geopolitical developments in the Middle East.