The price of gold 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. Bloomberg reports, UNN writes.
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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.
Gold falls after the first Fed rate hike in 3 years17.09.26, 05:35
This week, investors will be watching statements by Fed officials as they try to assess the pace of possible further rate increases. Minneapolis Fed President Neel Kashkari has already said that inflation remains too high and has spread far beyond rising oil prices.
Expensive gold remains under pressure from high interest rates
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.
As of 7:42 Singapore time, the spot price of gold had fallen 0.1% to $4,373.95 per ounce. Silver, meanwhile, rose 0.2% to $66.38 per ounce, while platinum and palladium also posted slight gains.