Gold prices fell on Thursday to their lowest levels in nearly a year, as prospects for an interest rate hike by major central banks to curb spiralling inflation weighed on the precious metal’s allure.<\/p>\n\n\n\n
Although gold is considered a hedge against inflation, higher interest rates increase the opportunity cost of holding the yellow metal, which does not yield a return.<\/p>\n\n\n\n
And gold fell in immediate transactions by 0.3 percent to $ 1691.84 an ounce (an ounce) by 0313 GMT, after falling to its lowest level since early August 2021, recording $ 1689.40 earlier in the session.<\/p>\n\n\n\n
US gold futures fell 0.6 percent to $1,690.40 an ounce.<\/p>\n\n\n\n
The European Central Bank is set to raise interest rates for the first time in 11 years on Thursday, with a larger-than-said move increasingly likely as policymakers fear losing control of unbridled consumer price growth.<\/p>\n\n\n\n
The Federal Reserve is also widely expected to raise interest rates by 75 basis points at its policy meeting next week.<\/p>\n\n\n\n
In Britain, inflation rose to a 40-year high in June, boosting the chances of the Bank of England raising interest rates by half a percentage point next month.<\/p>\n\n\n\n
The dollar’s decline limited gold’s losses, as it fell 0.3 percent against rival currencies. A weak dollar makes gold cheaper for holders of other currencies.<\/p>\n\n\n\n
Market participants are also anticipating the resumption of gas flows through the largest pipeline from Russia to Germany.<\/p>\n\n\n\n
Among other precious metals, spot silver fell 0.6 percent to $ 18.54 an ounce, platinum fell 0.5 percent to $ 854.03, while palladium increased 0.3 percent to $ 1867.20.<\/p>\n","protected":false},"excerpt":{"rendered":"
Gold prices fell on Thursday to their lowest levels in nearly a year, as prospects for an interest rate hike by major central banks to curb spiralling inflation weighed on the precious metal’s allure. Although gold is considered a hedge against inflation, higher interest rates increase the opportunity cost of holding the yellow metal, which …<\/p>\n","protected":false},"author":9,"featured_media":61079,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[38,37,36],"tags":[6923,6885,6874,8291,8143,6834],"class_list":["post-68816","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-commodities-news","category-forex-markets","category-market-updates","tag-ecb","tag-fed","tag-gold","tag-inflation-data","tag-interest-rate-hikes","tag-pmi"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/68816","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=68816"}],"version-history":[{"count":1,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/68816\/revisions"}],"predecessor-version":[{"id":68817,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/68816\/revisions\/68817"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/61079"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=68816"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=68816"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=68816"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}