Washington, March 23 (SANA) Gold prices dropped sharply on Monday, falling more than 5% to their lowest level in nearly four months as markets anticipated higher global interest rates amid persistent inflation concerns.
According to CNBC, spot gold declined by 5.5% to $4,236.89 per ounce, marking the ninth consecutive session of losses. The metal has lost more than 10% over the past week, reaching its weakest level since early January.
U.S. gold futures for April delivery fell 6.4% to $4,278.10, reflecting broader pressure on non-yielding assets as borrowing costs are expected to rise.
Other precious metals also declined, with silver down 3.3% to $65.55 per ounce, platinum falling 4.4% to $1,838.45, and palladium easing 0.4% to $1,398.50.
Despite gold’s traditional role as a hedge against inflation, rising interest rates tend to reduce demand for non-yielding assets such as gold.
Market expectations for a U.S. Federal Reserve rate hike have increased, with CME’s FedWatch tool indicating that the probability of a rate increase by December has reached about 27%, higher than earlier expectations of rate cuts.
R.H
