Gold at Lowest Level in Four Months

Gold prices dropped today, Wednesday, to their lowest levels in nearly four months against the backdrop of bets on maintaining high interest rates for a longer period, while Federal Reserve Chairman Jerome Powell reiterated his stance in favor of monetary tightening. Spot gold fell 0.1% to $1,912.49 an ounce after hitting its lowest level since mid-March. U.S. gold futures settled at $1,922.20 an ounce, also down 0.1%. Powell stated today that further rate hikes are likely to occur in upcoming Federal Reserve meetings, adding that he does not rule out an increase in borrowing costs at the policy-setting meeting scheduled for the end of July. According to the CME Group's FedWatch Service, investors expect an 82% chance of a rate increase at the upcoming Fed meeting in July. High interest rates do not encourage investment in gold, which does not yield returns. The dollar index rose 0.4%, making gold less attractive to buyers abroad. Regarding other precious metals, silver in spot transactions fell 0.3% to $22.81 an ounce. Platinum dropped 1.4% to $912.20 an ounce. Palladium declined 3.7% to $1,248.06 an ounce, its lowest level in four and a half years.