Gold ounce falls below $4,000: Weekly loss at 3.5 percent
Driven by rising oil prices and expectations of the Fed's tight monetary policy, gold per ounce has dropped below the $4,000 level. The precious metal has moved approximately 25 percent away from its peak in January.
The rise in oil prices and expectations that the US Federal Reserve (Fed) will keep interest rates high have increased selling pressure on gold prices. Gold per ounce, which reached a weekly loss of 3.5 percent, fell below the psychological threshold of $4,000, marking its lowest level since July.
The rise in energy costs triggering inflation concerns has weakened demand for gold, which does not provide interest yields. Geopolitical risks in the Middle East, rising bond yields, and a strong dollar index have caused the precious metal to move approximately 25 percent away from the peak level it reached in January, when it climbed above $5,400.
Markets are focused on the Fed's future policies and upcoming inflation data from the US. The downward trend in the gold market has also reflected on other precious metals; spot silver lost 1 percent to fall to $53.98, while platinum declined by 0.1 percent to $1,568.58. Palladium followed a flat course at $1,054.50 per ounce.
Sources
- posta.com.tr · Link