Gold Faces Weekly Decline Amid Rate Hike Expectations
Weekly gold prices declined by nearly 2%, amid expectations of a rise in U.S. interest rates following the release of the Consumer Price Index report, which showed an increase in both core and overall inflation. This has boosted the likelihood of a 25 basis point interest rate hike next week. The data has strengthened the prospects of tightening monetary policy, with the chance of a rate increase reaching around 87%, putting downward pressure on gold and supporting the dollar, which in turn raises gold prices for foreign buyers. Nonetheless, gold remained relatively range-bound, influenced by a wave of selling in U.S. Treasury bonds and rising oil prices.
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