Gold Prices Fall Amid Market Expectations of Another Rate Hike
Gold prices continued to decline on market expectations of another rate hike from the U.S. Federal Reserve. The spot price of gold fell by 0.5% to $4,261.59 per ounce, according to Bloomberg. Over the past week, gold lost more than 2%, and in September, its price mostly traded between $4,230 and $4,510 per ounce.
The high oil prices are adding pressure on gold due to the increased risk of inflation. Brent has risen by approximately 70% since the beginning of the year. The markets expect another Fed rate hike, with a probability of around 65% for October.
Other precious metals such as silver, platinum, and palladium also declined in value following gold. Silver lost 0.8% and traded at $63.77 per ounce, while platinum and palladium prices fell as well.