Gold declines as rate hike expectations rise
Gold prices dipped slightly amid expectations that the U.S. Federal Reserve will extend its rate hikes, despite escalating geopolitical tensions in Yemen and around the Strait of Hormuz. Statements from central bank officials emphasizing the need for further interest rate increases to curb inflation reduced the appeal of the precious metal, which is typically considered a safe-haven asset. The spot price of gold settled at $4,342.41 per ounce, while U.S. futures contracts declined to $4,379.30. Prices of other metals also fell, with silver dropping to $65.99 and platinum to $1,786.43 per ounce. The tightening monetary environment has led investors to prefer yield-bearing assets over gold, as markets monitor oil prices, which have risen again ahead of upcoming U.S.-Iran talks.
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