Gold declines amid rising interest rate bets
Gold prices decreased by 0.6% during Wednesday's trading, reaching $4,329.31 per ounce, as the dollar rose to its highest level in two months. This increase in the dollar makes the precious metal more expensive and less attractive. The decline is attributed to expectations that major central banks will stick to their interest rate hike policies, with the U.S. Federal Reserve raising interest rates to a range between 3.75% and 4%, along with hints of another hike before the year's end to control ongoing inflation. Despite this, analysts at BMI forecast that the average gold price will remain around $4,400 per ounce in 2026, due to geopolitical risks and central bank buying. Additionally, other precious metals saw declines: silver fell by 1.2% to $66.24, platinum by 1.4% to $1,807.80, and palladium by 1.1% to $1,293.68.
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