Gold prices fall for the week as US inflation fuels rate hike concerns
<p>New York: Gold prices edged lower on Friday, recording a weekly decline as investors assessed the prospect of another US Federal Reserve interest rate hike this year following a series of stronger-than-expected inflation readings.</p> <p>Spot Gold fell 0.1% to $4,165.12 an ounce, down 0.7% for the week.</p> <p>However, US Gold futures for December delivery rose 0.3% to $4,181.10 an ounce.</p>…
New York witnessed a decline in gold prices for the week as concerns over a potential annual interest rate increase by the US Federal Reserve weighed on investors, according to wire service reports. Spot Gold experienced a modest drop of 0.1%, settling at $4,165.12 per ounce, marking a weekly reduction of 0.7%. Conversely, US Gold futures for December delivery experienced a slight uptick of 0.3%, reaching $4,181.10 an ounce.
The upward trend in US Gold futures was attributed to recent data revealing the steepest increase in US producer prices in four and a half years, disclosed on Thursday. This surge followed earlier indications that consumer inflation had quickened in September, fueling apprehensions of further rate hikes by the Federal Reserve.
Despite gold's historic reputation as a safeguard against inflation, rising interest rates typically cast a shadow over the precious metal, as it does not generate income. Silver and platinum, two other metals tracked, also experienced weekly declines, with spot silver falling 0.7% to $57.05 per ounce, and platinum remaining steady at $1,626.15. Meanwhile, palladium saw a more pronounced drop of 1.1%, closing at $1,113.61. All three metals recorded weekly losses during this period.
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