Eco
Global gold prices experienced a notable decline in today's trading, Tuesday, amidst escalating concerns over worldwide inflation. These concerns are primarily fueled by rising crude oil prices, which have strengthened expectations that the U.S. Federal Reserve is poised to raise interest rates in its anticipated meeting tomorrow. By 11:05 Moscow time, gold futures contracts for December delivery recorded a 1% decrease, reaching $4308.50 per ounce. Furthermore, spot contracts for the yellow metal also saw a 0.70% decline, settling at $4269.70 per ounce, according to recent trading data. Investors are keenly awaiting the U.S. Federal Reserve's monetary policy decision, set to be announced tomorrow, Wednesday, at 18:00 GMT, following the conclusion of its two-day meeting. Prevailing expectations in financial markets strongly suggest that policymakers will move to raise the key interest rate by a quarter percentage point, bringing the target range to between 3.75% and 4%. Traditionally, gold is regarded as a safe haven asset for hedging against inflation risks and geopolitical instability. However, the yellow metal often loses its appeal when interest rates rise, as these increases elevate the opportunity cost of holding gold, which does not yield any return. This market dynamic unfolds in the wake of economic data released last Friday, which revealed an accelerated pace of consumer price increases in the United States during August 2026, while the core inflation index registered its largest gain in four months.
