Sharp selling pressure on precious and base metals
The commodity market experienced a decline driven by expectations of Fed rate hikes and artificial intelligence concerns; spot gold dropped to 4,284 dollars.
Precious and base metals in the commodity market faced severe selling pressure amid expectations of interest rate hikes by the US Federal Reserve and concerns surrounding the artificial intelligence sector.
Developments Pressuring the Markets
The fact that tensions in the Middle East keep energy prices high and US inflation data shows that pressures persist has increased bond yields and demand for the dollar in global markets.
Fed Rate Expectations Rose
Following strong employment data, inflation expectations, and statements by Fed Chair Kevin Warsh, the probability of an interest rate hike at this week's meeting rose to 88 percent.
Changes in Precious Metals
Following these developments, spot gold fell by 1.5 percent to 4,284 dollars, while silver lost 3.3 percent, platinum 2.3 percent, and palladium 2.2 percent in value.
Latest Situation in Base Metals
Among base metals traded on a per-pound basis, copper dropped by 2.3 percent to 6.3 dollars, while aluminum fell by 2 percent to 1.48 dollars.
Expert Evaluations
Saxo Capital Head of Commodity Strategy Ole Hansen stated that inflation and the rise in crude oil prices are creating pressure on gold and copper prices.