Al-Warsh's stance drags gold to two-week low
Gold prices dropped to their lowest level in two weeks amid expectations of a U.S. interest rate hike and the possibility of increased inflation resulting from tensions in the Middle East. Federal Reserve Chairman Kevin Warrish hinted at the need to raise interest rates to ease price pressures, leading to a 0.8% decline in spot gold, which fell to $4,417.04 an ounce. Futures also declined to $4,466.80. The anticipation of higher interest rates, which currently stand at a 60% chance for September, is among the reasons for the yellow metal's decline, despite the fact that gold does not generate income and is typically used as a hedge against inflation. Additionally, prices of other precious metals such as silver, platinum, and palladium also fell due to weak demand and market expectations.
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