Gold prices fall amid rising oil prices!
Investors expect the US Federal Reserve (FED) to raise interest rates at its meeting this week.
Gold prices fell on the first trading day of the week. The main reason was the rise in oil prices, which increased concerns about inflation. Investors expect the US Federal Reserve (FED) to raise interest rates at its meeting this week.
Spot gold fell 0.3% to $4,334.31 per ounce. US gold futures also declined 0.8% to $4,375. Analysts say that rising energy prices and expectations of higher interest rates are putting pressure on gold. However, geopolitical tensions and uncertainty over monetary policy could increase demand for gold after price declines.
US consumer prices accelerated in August, while one of the key inflation indicators recorded its highest increase in four months. According to the CME FedWatch Tool, investors estimate the probability of a FED rate hike at 86.5%, up from 67% previously.
Oil prices also rose by more than 2% amid escalating tensions in the Middle East. Rising supply risks have added further pressure to the market. Silver fell 0.7%, while platinum and palladium remained almost unchanged. Meanwhile, interest in safe-haven assets remains high due to geopolitical risks.