Gold Prices Take a Hit Amid Interest Rate Pressure

World gold prices faced new pressure at the beginning of this week as investors assessed the interest rate outlook after the US Federal Reserve's latest decision. The Fed raised interest rates by another 0.25 percentage points at a meeting on September 15-16, marking its first hike since 2023.

The market continues to monitor statements from Fed officials this week for more signals about the pace of interest rate adjustments in the coming months. US inflation has not yet reached the Fed's 2% target in more than five years, making monetary policy prospects a concern.

High interest rates can put pressure on gold as it does not generate income from interest. Any signal that interest rates may remain at a higher level for longer can affect the attractiveness of gold.