Gold falls due to the possibility of additional rate hikes

28 Feb 2023 , 09:28 AM

The yellow metal was down approximately 5.8% for the month as a whole, marking a sharp reverse after reaching a ten-month high earlier this month.

Since then, the U.S. economy has showed signs of strength, leading several Fed policymakers to support additional rate hikes to control inflation.

Spot gold was down 0.1% at $1,816.33 per ounce after falling to a two-month low on Monday. At $1,824.70, US gold futures were unchanged.

The Personal Consumption Expenditures (PCE) index remained ‘elevated,’ according to Fed Governor Philip Jefferson, who stated on Monday that he was ‘no illusion’ that inflation would return fast to the Fed’s 2% target.

According to the GoodReturns website, the price of gold dropped by Rs160 in early trade on Tuesday, with ten grams of 24-karat gold trading at Rs56,020. One gram of silver now costs Rs67,800 after silver prices dropped by Rs700.

Ten grams of 22-karat gold cost Rs150 less today than it did yesterday when it was close to Rs51,350.

Ten grams of 22-karat gold cost Rs51,350 in Mumbai, the same as it does in Kolkata and Hyderabad. Ten grams of 22-karat gold are priced at Rs 51,500, Rs 51,400, and Rs 52,010 in Delhi, Bengaluru, and Chennai, respectively.

As the possibility of additional interest rate increases from the Federal Reserve continued to weigh on the attraction of the zero-yielding commodity, US gold prices fell on Tuesday and were on track for a monthly fall of around 6%.

The price of spot silver increased by 0.1% to $20.63 an ounce on the day, and it was expected to see its largest monthly fall since September 2020.

Palladium dropped by 0.4% to $1,425.05. Platinum increased by 0.1% to $939.53. The prices of both metals were anticipated to decline for the month.

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