Rate hike expectations are pushing gold prices lower!

Gold prices rose 0.2% on Friday to $4,324.79 per ounce. Despite this, the precious metal is expected to end the week with a loss of more than 2% as expectations surrounding US interest rates strengthen. Investors are focused on the Consumer Price Index (CPI) data due to be released in the US. The data is expected to provide new signals about the Federal Reserve’s future monetary policy. Earlier, the Producer Price Index (PPI) rose 0.4% in August, strengthening expectations about interest rates. Higher interest rates could boost the dollar and US Treasury yields, putting pressure on non-yielding gold. Analysts also say that ongoing tensions in the Middle East are affecting the gold market. Among other precious metals, silver fell more than 4% over the week. Platinum and palladium also recorded weekly declines.