Gold prices hover near one-year low amid US rate hike expectations
Bullion prices remain low as inflation concerns strengthen bets on a Federal Reserve interest rate increase.
Gold prices saw a slight increase during early Asian trading on Monday but stayed close to a one-year low, according to reports from The Economic Times and The Times of India. Spot gold rose 0.5 per cent to $3,894.89 per ounce, while US gold futures for December delivery increased 0.1 per cent to $3,903.90.
The metal's appeal has been weighed down by persistent inflation concerns. These concerns have reinforced expectations that the US Federal Reserve may raise interest rates later this year. Data showed US inflation accelerated in September, supporting economist expectations of a rate hike in December.
Traders are currently pricing in a 75 per cent chance of a rate hike in December, according to the CME's FedWatch Tool. Analysts at Commerzbank noted that bullion fell below the $4,000 per ounce level on Friday following a sharp decline in technology stocks.
In the local market, gold prices in New Delhi dropped by Rs 3,200 to Rs 1,42,000 per 10 grams on Saturday. Silver prices in Delhi also declined by Rs 4,200 to Rs 1,86,000 per kg on the same day.
Other precious metals also saw movement in early Asian trading. Spot silver gained 1.2 per cent to $49.6935 per ounce, while platinum rose 0.8 per cent to $1,446.05 per ounce and palladium climbed 1.1 per cent to $986.76 per ounce.
