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Interest Rate Hike Expectations Weigh Down Gold Prices

Gold prices remained near a four-month low due to comments made by Federal Reserve Chair Jerome Powell, who suggested more interest rate hikes were likely to combat inflation.

Spot gold rose 0.25% to $1,912.19 per ounce. On Wednesday, the metal hit its lowest since mid-March at $1,902.69.

US gold futures fell 0.1% to $1,920.50.

The dollar index was steady. USD/ Powell suggested another two rate hikes to the Fed funds target rate were likely, and he did not see inflation abating to the 2% target until 2025.

Investors now see an 81% chance of a 25-basis point rate hike in July, according to CME's Fedwatch tool.

High interest rates discourage investing in non-yielding gold.

Spot silver rose 0.6% to $22.86 per ounce while platinum gained 0.7% to $916.73. Palladium jumped 1% to $1,261.66, having fallen to its lowest in 4-1/2 years in the previous session.

Source: Qatar News Agency

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