Gold and Silver Prices Drop as Inflation and Fed Rate Hike Expectations Rise
According to Kitco, on 12 November spot gold and silver prices fell sharply as persistent U. S. inflation and rising expectations of Federal Reserve rate hikes pushed gold below $4,000 per ounce, its lowest level in more than a week. Earlier, on 6 November, stronger-than-expected inflation data heightened expectations of a December rate increase, which Kitco said triggered the price decline. Kitco also noted that a stronger dollar and heightened rate-hike expectations added further pressure on the metals. In the weeks before, prices had risen on a weaker dollar, falling crude oil and hopes for a diplomatic resolution to the U.
S. –Iran tension, according to Kitco, and after the U. S. Labor Department reported an October job gain of 165,000, as reported by Kitco. Moneycontrol. com warned that the metals could face renewed pressure ahead of upcoming inflation figures and geopolitical developments.
