Gold Falls Below $4,400 as US Interest Rate Concerns Persist

Gold futures on Bursa Malaysia Derivatives closed lower on August 13, weighed down by concerns that US interest rates could remain higher for longer despite a softer-than-expected inflation reading.

Stephen Innes, global strategist at Quintex Intel, said the weaker US consumer price index (CPI) had reduced expectations of a near-term rate hike by the Federal Open Market Committee, which should support demand for gold.

However, bullion slipped below $4,400 per troy ounce as investors remained focused on the outlook for US interest rates.

Innes noted that the US dollar recovered most of its losses after the CPI reading, suggesting traders have moved past the inflation print and are now looking to the Jackson Hole Economic Policy Symposium at the end of August for the next major policy cue.