Gold remains near recent lows
Gold prices experienced a slight increase today, Tuesday, despite nearing their lowest level in over seven weeks, amid concerns that the U.S. Federal Reserve will continue raising interest rates for a longer period. Spot gold rose by 0.4% to $1,130.58 per ounce after hitting its lowest since early August, while U.S. futures declined by 0.2% to $1,162.20. The fluctuation in gold prices is attributed to geopolitical tensions and rising oil prices, which increase inflationary pressures and prompt central banks to tighten monetary policy, even though higher interest rates generally put downward pressure on gold as an inflation hedge. Market expectations indicate a 72.5% chance that the Federal Reserve will raise interest rates in October, according to futures instruments. Regarding other precious metals, silver fell 0.9% to $60.42, platinum dropped 1.3% to $1,697.71, and palladium decreased 0.8% to $1,205.27.
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