Gold Prices Tumble Amid Interest Rate Hopes
Gold prices were stable on Wednesday but remained on track for their biggest monthly decline in months as investors continued to bet on higher US interest rates. The precious metal has lost around 6% of its value since September began, with spot gold trading at $4,180.30 per ounce as of 04:35 GMT.
The Federal Reserve's decision to raise its benchmark rate by 25 basis points earlier this month has investors focused on the US personal consumption expenditures (PCE) price index, which is due out at 12:30 GMT. A weaker-than-expected inflation reading could support gold and potentially push prices back toward $4,200-$4,300, according to Tony Sage, CEO of Critical Metals.
However, stronger inflation figures could lift US Treasury yields and the dollar, putting gold under renewed pressure and bringing the $4,100 level into focus. The US dollar is also heading for a monthly gain, making it more expensive for buyers using other currencies.