Gold prices fall on expectations that interest rates will remain high for longer
Gold prices fell during early Asian trading hours. Spot gold fell 0.4% to $4,001.73 an ounce. Rania Gule of XS.com said in a report that expectations that interest rates will remain high for longer have boosted the dollar and U.S. Treasury yields, which may have dealt a heavy blow to gold prices. However, she believes the recent decline is more likely to be a temporary repricing process than the start of a longer-term bear market for the yellow metal. She added that gold's structural characteristics make it continue to be an effective hedge against sovereign risks, ongoing inflation and geopolitical uncertainty, while central bank buying should provide long-term support for gold prices. Open a futures account on Sina's cooperative platform, safe, fast and guaranteed