Gold prices fall on higher interest rate expectations
Gold prices fell as the Federal Reserve signaled interest rates will remain elevated. Persistent inflation and high oil prices pressured the non-yielding asset.
Gold fell 0.7% to $4,588.32 on Friday morning as persistent inflation data fueled expectations for prolonged high interest rates. The metal is pacing for a 2.3% weekly decline, its sharpest retreat since the Iran conflict began in late February. Investors are pivoting toward yielding assets as the Federal Reserve maintains a hawkish stance on monetary policy.
### Inflation Fears Anchor Interest Rates The United States Federal Reserve kept interest rates unchanged this week, signaling that borrowing costs will remain at current levels for the near term. EverBank president of world markets Chris Gaffney said traders are selling bullion because the central bank adopted a tone that eliminated market hopes for a rate cut this year.
