Gold prices fell slightly on Thursday, as expectations for tighter monetary policy from the U.S. Federal Reserve grew, while a drop in oil prices provided some support for the precious metal.
The spot gold price declined by 0.1% to $4,281.98 per ounce, while the U.S. gold futures for December delivery settled at $4,317.50.
Ross Maxwell, Chief Strategy Officer at VT Markets, stated that investors are focusing on the Fed's direction to keep interest rates high for a longer period, alongside movements in the dollar, Treasury yields, and developments in the Middle East.
The Federal Reserve raised the main interest rate by 25 basis points last week to a range between 3.75% and 4.00%, amid expectations that inflationary pressures and economic improvements will lead to further tightening of monetary policy.
Typically, rising interest rates reduce the attractiveness of gold, which does not yield a return, compared to interest-bearing investments.
In other precious metals, spot silver fell by 0.6% to $64.07 per ounce, while platinum increased by 0.2% to $1,754.05, and palladium decreased by 0.1% to $1,260.70.