Global Gold Prices Dip Below 4,000 Dollars Amid High US Inflation

Precious metals face heavy weekly declines as markets anticipate another Federal Reserve rate hike

Global gold prices slipped significantly during Asian trading hours on Friday. The precious metal dipped below the crucial 4,000-dollar threshold today. Higher global oil prices recently spurred deep concerns about rising economic inflation. Robust United States inflation data also heavily influenced this downward market trend. These factors strengthened the case for another Federal Reserve interest rate hike. Spot gold dropped 0.6 percent to settle at 3,997.39 dollars per ounce. United States gold futures for December delivery also fell by 0.6 percent. Those futures currently sit at 4,007.80 dollars on the trading floor. Bullion now remains on track for a second consecutive monthly decline. Other precious metals also suffered notable losses across the board today. Spot silver slid 2.1 percent to reach 51.27 dollars per ounce. Platinum dropped 1.9 percent, bringing its price down to 1,458.85 dollars. Palladium also fell by 2 percent to hit 986.08 dollars today. All three of these metals face both weekly and monthly market declines. Global investors continue adjusting their portfolios ahead of upcoming central bank decisions. Higher interest rates typically reduce the overall appeal of non-yielding assets like gold.

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