Gold slips as global rate hikes curb buyer demand
Business
Gold prices slipped a bit this Monday, with spot gold down 0.2% to $4,368.33 per ounce and US futures dropping 0.4%.
The main reason? Central banks around the world, including the Bank of Japan and the US Federal Reserve, are hiking interest rates to fight inflation, which has been fueled by ongoing geopolitical tensions such as tensions involving Iran.
Indian buyers pause, China premiums steady
Higher interest rates make gold less attractive compared to other investments that actually pay you back, so places like India are seeing buyers hold off for now.
Meanwhile, silver, platinum, and palladium each nudged up by 0.1%.
Over in China, demand for gold is still strong, keeping premiums steady, even as global markets react differently to all this uncertainty.