ISLAMABAD: Gold prices fell in the global market as higher-than-expected inflation data in the United States weakened hopes of a rate cut.
Spot gold fell 0.3 percent to around $4,702 an ounce, while US gold futures recorded a slight increase. According to experts, the strong inflation data has almost eliminated the possibility of a rate cut by the Federal Reserve.
Analyst Kyle Roda says that the market is now also taking into account the possibility of an interest rate increase by the end of the year, which is increasing pressure on gold.
According to data, US consumer inflation increased significantly in April, which is the highest in the last three years, after which investors’ attention has shifted to upcoming economic indicators.
Meanwhile, the meeting between US President Trump and Chinese President Xi this week is also the focus of investors’ attention, while the tense situation in the Middle East is also affecting the market.
On the other hand, the price of silver increased slightly, while the prices of platinum and palladium decreased or stabilized.
