Gold prices slipped as an oil rally fanned expectations of a rate hike ahead of the Federal Reserve meeting. This was reported by Qazaqyia.kz citing Reuters.
The rise in oil prices intensified inflationary pressure and strengthened expectations of a rate hike ahead of the upcoming Fed meeting. This situation reduced the appeal of gold.
Gold is traditionally viewed as a hedge against inflation, but rising interest rates reduce its appeal, as gold does not yield interest income.
Market participants are awaiting the outcome of the Fed meeting, which will determine the further direction of monetary policy.