Gold and silver prices fell ahead of key indicators following the US Federal Reserve’s meeting.
The precious metal’s daily loss in value was 0.7 percent, with an ounce of gold trading at close to $2,340 today.
Verbal guidance from Federal Reserve officials that interest rates may remain on hold for an extended period weighed on gold prices, while continued rising geopolitical risks following the Israeli attacks also supported safe-haven buying.
Minneapolis Federal Reserve President Neel Kashkari said in an interview today that the Fed should expect to see significant progress in inflation before cutting interest rates. Kashkari said he would not rule out further rate hikes if price pressures rise again.
Critical data is monitored
Meanwhile, investors remained cautious as they focused on United States (U.S.) core personal consumption expenditures price index (PCE) data for April due on Friday.
The Fed’s preferred inflation measures are expected to rise steadily at 0.3% and 2.8% paces on a monthly and annual basis, respectively.
Markets are pricing in a 44% probability that the Fed will make its first rate cut in September, down to 56% in November and 77% in December.
In response to these developments, the yield on the 10-year U.S. Treasury note rose for the second consecutive day, and the rise in the dollar index also contributed to the decline in gold prices.
Gold and Silver Update
In tandem with these developments, gold ounce fell 0.7% to trade at $2,345, while silver fell 1% to $31.7 per ounce.
The price of a gram of gold was trading at 2,428 TL at 16:30. At the same time, Quarter Gold was sold for 3,972 TL, Republic Gold for 15,840 TL. One gram of silver was sold for 33 TL.
