Mumbai, Oct 21 (NV) The prices of Gold fell for a fourth consecutive session today as rising oil prices revived inflation concerns, while investors assessed the outlook for US interest rates ahead of the US Federal Reserve’s October 27 policy meeting.
Spot gold was down 0.1 per cent at USD 4,119.37 an ounce by 0516 GMT, while US gold futures for December delivery slipped 0.1 per cent to USD 4,137 an ounce.
Other precious metals also traded lower on Wednesday. Spot silver fell 1.1 per cent to USD 57.35 an ounce, platinum declined 0.6 per cent to USD 1,639.47 an ounce, and palladium dropped 1 per cent to USD 1,091.78 an ounce, according to media reports.
The decline in bullion came as international crude oil prices edged higher amid concerns over supply disruptions in the Middle East.
Traders were monitoring risks to Red Sea shipping and threats to oil infrastructure in Saudi Arabia, keeping energy markets sensitive to geopolitical developments.
Higher oil prices can add to inflationary pressures, potentially prompting central banks to maintain tighter monetary policies.
Gold, which does not pay interest, tends to face pressure when expectations of higher interest rates increase the opportunity cost of holding the metal.
Investors are looking ahead to the Federal Open Market Committee’s 27 to 28 October meeting for signals on the direction of US monetary policy.
Interest-rate expectations reflect the pressure facing bullion.
According to CME’s FedWatch Tool, markets assigned a 15 per cent probability to a rate hike at the October meeting and an 88 per cent probability to a December increase.
A stronger-than-expected inflation outlook could reinforce expectations of higher rates, while a reduction in projected hikes could support gold prices. (NVI)
