Significant Gold Price Drop in Global Market Amid Interest Rate Hike Fears

From the report

Gold prices have fallen in the global market amidst fears that the US central bank, the Federal Reserve, will raise interest rates. On Tuesday (November 10), gold prices in the spot market fell by 1.5 percent at one point, reaching $4,078.53 per ounce. The price of gold came under pressure after a Fed official’s statement in favor of a hawkish monetary policy, which led to an increase in the short-term interest rates of the dollar and US Treasury bonds.

According to a Reuters report, market data published before Tuesday evening Bangladesh time showed that gold prices in the spot market fell by 1.5 percent at 10:25 AM GMT. Concurrently, the price of gold futures for December delivery in the US decreased by 0.7 percent, settling at $4,086.30 per ounce.

Federal Reserve Governor Christopher Waller stated that even if inflation subsides, the central bank should raise interest rates next month. Furthermore, if the inflation situation deteriorates, a half-percentage-point rate hike should also be considered. Following his remarks, market expectations for higher interest rates intensified.