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Gold prices plummet to 11-week low on rate hike fears and oil price surge

Gold prices have hit an 11-week low due to concerns over the US Federal Reserve's interest rate hike and rising oil prices. The precious metal's value has decreased as investors seek safer assets.

  • Gold prices have fallen to an 11-week low
  • Concerns over US Federal Reserve's interest rate hike
  • Rising oil prices also contributing to gold price decline

Gold prices have plummeted to an 11-week low, driven by concerns over the US Federal Reserve's interest rate hike and a surge in oil prices.

The price of gold, which is often seen as a safe-haven asset, has been impacted by the US central bank's decision to raise interest rates in a bid to combat inflation.

According to the World Gold Council, the price of gold has fallen by 6% in the past week, with spot prices currently trading at around $1,630 per ounce.

The organisation noted that the decline in gold prices has been driven by a combination of factors, including rising interest rates and higher oil prices. The latter has seen crude oil prices surge to a nine-year high, further exacerbating the decline in gold prices.

Investors have been seeking safer assets, such as government bonds, as a result of the rate hike and oil price surge, which has contributed to the decline in gold prices.

Why this matters: The decline in gold prices could have implications for UK investors and pension holders, who may be looking to diversify their portfolios in light of rising interest rates and inflation.

What this means for you: What this means for you: The decline in gold prices could affect the value of your pension or investments if they hold gold or gold-related assets.

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