Gold gains 2% amid rate hike fears
Gold prices rose by approximately 2% during Friday's trading, reaching around $4,400 per ounce, despite expectations of an increase in U.S. interest rates at the upcoming meeting. This came after American inflation data indicated ongoing inflationary pressures, such as a 0.4% rise in the Consumer Price Index in August and increased energy costs, which raised the likelihood of a rate hike to 85% from 67% prior to the data release. Although demand in India declined, investment demand in China remained strong. Additionally, prices of other precious metals like silver, platinum, and palladium increased. Gold continues to be heavily influenced by Federal Reserve policies and inflation expectations, as rate hikes diminish its appeal as a safe haven asset.
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