Gold Prices Fall as US Federal Reserve Expected to Keep Rates on Hold
Gold futures fell as optimism about a US interest rate cut faded. Futures fell 0.6% to $2,761.10 a troy ounce. The precious metal has given up some of its gains recorded over the past week but is still up 4.7% this year on geopolitical uncertainty and safe-haven demand.
Gold futures have fallen back as investors position ahead of the US Federal Reserve’s interest rate cut decision later this week. The Fed is widely expected to keep rates on hold. Non-interest-bearing bullion typically has an inverse relationship to interest rates, with lower rates boosting bullion’s appeal.
The move lower likely also reflects renewed tariff concerns from the US, which are usually a boost to the US dollar and tend to weigh on gold’s appeal, SP Angel analysts said in a note.
Source: Bloomberg
