Gold stays within narrow range amid rate hike expectations
Gold prices fluctuated within a limited range on Thursday, amid expectations that the U.S. Federal Reserve will continue tightening monetary policy by raising interest rates, despite a decline in oil prices that supported the precious metal. The spot gold price fell by 0.1% to $4,289.55 per ounce, as investors kept a close watch on Fed decisions, Treasury bond yields, and energy developments in the Middle East. Last week, the Federal Reserve raised interest rates by 25 basis points amid signals of ongoing inflationary pressures, with another rate hike expected in late October, keeping gold prices under pressure. Meanwhile, oil prices declined following Iranian statements indicating that the door remains open for dialogue, which could reduce inflation fears and support the yellow metal. Economic data suggest that U.S. economic activity continues to grow, reinforcing expectations of further interest rate hikes. This leads to ongoing volatility in precious metals prices, with forecasts that gold may trade around the $4,200 per ounce level in the upcoming period.
Notice: This Is an AI-Generated Summary
Comments (0)