Gold prices fall as investors expect prolonged high interest rates
Gold declined as investors weighed the likelihood of major central banks keeping interest rates elevated for longer to curb persistent inflation.
Gold prices slipped as investors weighed the likelihood of major central banks maintaining high interest rates for an extended period to combat persistent inflation. Spot gold decreased 0.6% to $329.31 per ounce, while US gold futures for December delivery fell 0.2% to $366.90. Analyst Kyle Rodda noted that short-term gold volatility is primarily influenced by oil markets and Middle East developments, but emphasized that gold's long-term fundamentals remain robust.
In recent weeks, the US Federal Reserve raised interest rates by 25 basis points to 3.75-4%, with possible further increases before the year's end. The Bank of Japan and the European Central Bank have also raised rates. BMI analysts maintain a 2026 gold price forecast of $400 per ounce, citing strong support from geopolitical risks and central bank purchases near the $800 level.
Among other precious metals, silver declined 1.2% to $66.24 per ounce, platinum dropped 1.4% to $807.80, and palladium fell 1.1% to $293.68.
Written by urgent.news from Ajel English's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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