🔻 Gold price after falling by more than three percent remained unchanged

🔻 Gold price after falling by more than three percent remained unchanged

Gold prices on Monday remained almost unchanged after having fallen by more than three percent in the previous session.

According to Reuters, the spot price of gold per ounce was at around $4,455, and U.S. gold futures for December delivery fell by 0.6%.

The recent drop in gold prices came after Kevin Warsh, head of the U.S. Federal Reserve, said that if there is not sufficient confidence that inflation will be reduced to the two percent target, an increase in interest rates may be necessary.

Markets now assess the likelihood of an interest rate hike at the Federal Reserve’s September meeting at 57%; this figure had been 36% before Mr. Warsh’s remarks.

Rising interest rates typically put pressure on gold prices, because holding an asset that does not generate periodic returns becomes less attractive.

Reuters also pointed in this report to the intensification of the United States’ economic pressure on Iran and wrote that Tehran called Washington’s new sanctions “state terrorism,” while a message attributed to Mojtaba Khamenei stressed the prohibition of actions that harm “social cohesion.”