Gold falls amid expectations of prolonged high interest rates
Gold prices declined on Wednesday following expectations that major central banks will continue to raise interest rates, especially amid the dollar reaching its highest level in two months. This made gold priced in dollars more expensive for buyers. The spot gold price fell by about 0.6% to $4,329.31 per ounce, while December futures were down 0.2% at $4,366.90. Nevertheless, analysts anticipate that geopolitical risks support and ongoing central bank purchases will keep gold prices around $3,800 per ounce, with forecasts suggesting the average gold price will reach $4,400 in 2026. Gold remains a hedge against inflation, but rising interest rates are diminishing its attractiveness.
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