Gold waits on Fed decision
The article discusses the decline in gold prices below the level of $4,400 per ounce, as they fell amidst rising oil prices and concerns over inflation. These factors have boosted expectations that the U.S. Federal Reserve will increase interest rates at its meeting this week. Spot gold prices declined by 0.3%, reaching $4,334.31 per ounce, with an 86.5% probability of a rate hike—up from 67% prior to the release of recent inflation data. Additionally, the Bank of Japan is expected to raise interest rates on Friday, given ongoing inflation and rising energy prices amid geopolitical tensions in the Middle East. These developments have increased the attractiveness of the dollar and driven oil prices higher, raising concerns about their impact on gold’s appeal as a safe haven against inflation.
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