Gold losing shine as interest rate jitters return ahead of Fed meeting

Gold falls below key level as Fed rate worries resurface.

Gold losing shine as interest rate jitters return ahead of Fed meeting
XAU/USD

Gold (XAU/USD) prices fell in Asian trading on Monday, dropping to $2,147.74 by 06:30 GMT, losing a key support level as investors awaited interest rate signals from the Federal Reserve later this week.

The precious metal's decline comes amid renewed concerns about rising interest rates, with the dollar strengthening and 10-year Treasury yields hovering above 4%. This shift away from non-yielding assets, like gold, has put downward pressure on its price.

While the Fed is expected to hold rates steady at its upcoming meeting, any hints of future hikes could further dampen gold's appeal. Recent hotter-than-expected inflation data has fueled anxieties about a more hawkish central bank stance, a concern that previously drove gold prices away from record highs earlier this month.

The breach of the $2,150 support level suggests a potential for further declines in the near future. If gold is to have a significant pullback, the next crucial support zone sits around $2,080.


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