Gold prices fell today, Friday, at the beginning of Asian trading, after losses exceeding 1% in the previous session, amid continued pressure from rising inflation rates in the United States, which have bolstered expectations of a potential interest rate hike again.
Spot gold prices decreased by 0.4% to record $4006.06 per ounce, while U.S. December futures fell by 0.3% to $4018.50 per ounce.
Despite this decline, the yellow metal is heading towards limited weekly gains, although it is close to recording losses for the second consecutive month.
The drop in gold came after U.S. inflation accelerated during September, driven by rising gasoline costs and several other goods, which reinforced market expectations of an interest rate hike in December, with estimates from traders putting the chances of this decision at around 75%.
Rising interest rates reduce the appeal of gold, as it is an asset that does not generate returns for investors.
In this context, other precious metals also recorded declines, as silver fell by 1% to $51.87 per ounce, while platinum remained steady at $1488, and palladium decreased by 0.5% to $1000.75, amid expectations of weekly and monthly losses for the three metals.