Gold Falls to One-Week Low on Fed Rate Hike Outlook
Gold prices dropped to a one-week low as rising oil prices and a hawkish Federal Reserve raised expectations for higher interest rates. A stronger dollar and elevated Treasury yields further increased the opportunity cost of holding bullion.
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Gold fell 0.5% to a one-week low of $4,265.50 per ounce on Thursday afternoon, pressured by surging energy costs. The decline follows a hawkish shift from the United States Federal Reserve. Higher interest rates increase the opportunity cost of holding the non-yielding metal.
