Gold Prices Plummet Amid Rising US Interest Rate Hopes

Gold prices plummeted globally following a strong US employment report that heightened expectations of a Federal Reserve interest rate hike. At 7:01 pm Bangladesh time on Friday, gold prices in the spot market dropped by 2.2 percent to $4,376.4 per ounce.

This sudden downturn is attributed to the robust state of the US labor market, which has increased the likelihood of a central bank interest rate increase. Market analysts warn that if interest rates rise, gold's appeal as a non-interest-bearing asset will decline, putting downward pressure on its price.

The impact was not limited to gold alone; other precious metals also experienced declines. Silver prices fell by 3 percent, platinum by 2 percent, and palladium by 1.7 percent. The domestic market saw the price of 22-carat gold per vori fixed at Tk 237,362.