London, Oct. 21 (SANA) Gold prices fell for a fourth consecutive session on Wednesday as rising oil prices heightened inflation concerns, while investors awaited signals on the future path of US interest rates.
Spot gold slipped 0.1% to $4,119.37 an ounce by 0516 GMT, while US gold futures for December delivery fell 0.1% to $4,137 an ounce.
Gold could remain under pressure as rising crude prices fuel inflation and reinforce expectations of tighter monetary policy, said Bas Kooijman, chief executive and asset manager of DHF Capital S.A.
Oil prices edged higher on concerns over Middle East supplies, with traders monitoring Red Sea shipping risks and threats to Saudi oil infrastructure. Brent crude touched $111.99 a barrel on Tuesday, its highest level since May 20.
Fed decision in focus
The Federal Reserve is widely expected to leave interest rates unchanged at its October 27-28 meeting, according to a Reuters poll of economists. However, markets anticipate a possible rate increase in December as inflation remains persistent.
Expectations of a hike at next week’s meeting stood at around 15%, while traders saw an 88% chance of a December increase, according to CME’s FedWatch Tool.
Higher interest rates typically weigh on gold because it does not pay interest, making it less attractive than interest-bearing assets. A stronger US dollar can also reduce bullion demand by making it more expensive for buyers using other currencies.
The US dollar index stabilized after recent losses. Investors are also awaiting US Personal Consumption Expenditures data next week, the Federal Reserve’s preferred inflation measure, which is assessed against its 2% target.
Other precious metals decline
Spot silver fell 1.1% to $57.35 an ounce, platinum declined 0.6% to $1,639.47, and palladium lost 1% to $1,091.78.
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