Gold Price Rises

The price of gold has increased, supported by a decline in the dollar, as investors assessed some risks of significant interest rate hikes expected from major central banks this week, particularly the Federal Reserve (U.S. central bank) to combat inflation. Gold rose in spot transactions by 0.2 percent to $1,677.89 per ounce at 00:22 GMT. U.S. gold futures also increased by 0.2 percent to $1,686.50. The dollar index fell by 0.2 percent, making gold cheaper for overseas buyers. The Federal Open Market Committee of the Federal Reserve is expected to begin its two-day meeting on interest rates on September 20, with an announcement of the decision the following day. Most banks are expected to raise interest rates during their meetings this week, from Switzerland to South Africa, with markets divided over whether the Bank of England will raise rates by 50 or 75 basis points. Regarding other metals, silver's spot price rose by 0.2 percent to $19.59 per ounce. Platinum fell by 0.1 percent to $906.15, while palladium decreased by 0.2 percent to $2,129.55.