Gold Falters Amid Rising US Inflation and Higher Interest Rates

The price of gold has stabilized near $4,375 per ounce after a moderate rise last week amid concerns about persistent inflation in the United States and the Federal Reserve's future policy.

Last week, the Fed unanimously raised its interest rate by 0.25 percentage points, the first increase since 2023. The regulator is trying to curb inflation, which has exceeded the 2% target for more than 5 years.

The energy prices due to the U.S. war with Iran have become an additional factor. Their rise strengthens expectations that the Fed may keep interest rates high for longer, which traditionally puts pressure on gold.