Sourceagencies
Gold prices fell during today’s trading ahead of a series of interest rate hike decisions expected by a number of central banks this week.
And Bloomberg news agency said the price of gold fell 0.3% today while the dollar was up against other major currencies, noting that decisions by the US Federal Reserve (Central Bank) to raise the rapid-paced interest rates this year has pushed the yellow metal into decline, while boosting the value of the dollar and US Treasury bills.
Next Wednesday it is expected to announce a hike in US interest rates by 50 basis points, to between 4 and 4.5%.
The Council is expected to indicate its intention to continue raising interest rates over the next year as, at the same time, lower-than-expected inflation data over the past month has reduced the chances of raising interest rates by a high percentage, after successive increases in the previous months.
Last month’s US inflation data is expected to be released on Tuesday, while the Federal Reserve is due to announce its interest rate decisions on Wednesday.
Several major central banks, including the Bank of England and the European Central Bank, plan to make interest rate decisions this week.
Gold prices fell in spot contracts in London today to trade at $1791.31 an ounce, after rising 0.5% on Friday at the end of last week’s trading.
The price of silver also stabilized and the price of platinum and palladium fell, while the Bloomberg Dollar Value Index rose 0.1%.
