Gold prices fall in global market

Gold prices have fallen slightly in the international market ahead of US Federal Reserve Chairman Kevin Warsh's important speech at the Jackson Hole conference.

Spot gold prices fell 0.5 percent to $4,580.19 per ounce as of 10:38 a.m. Bangladesh time on Friday. Earlier, on Tuesday, gold prices had reached their highest level in more than three months, reaching $4,696.18.

Meanwhile, US gold futures fell 0.7 percent to $4,632.40 per ounce.

According to Matt Simpson, senior analyst at StoneX, Warsaw's statement is more likely to support a tighter monetary policy stance. If that happens, gold prices could fall further from recent highs in the short term.

However, he believes that if the price falls, gold market buyers may take it as an opportunity. Especially those who could not enter the market in the first phase of the recent rise, they will look for new investment opportunities. This could lead to gold prices moving towards $5,000 again.

Fed officials expressed concern about U.S. inflation at a conference in Jackson Hole on Thursday, a day after data showed the Fed's core inflation measure, the Personal Consumption Expenditure Index, rose to 3.7 percent in the 12 months through July.

The market is now focused on Fed Chairman Kevin Warsh's speech. According to market analysts, the probability of a US interest rate hike in September is 33.7 percent and the probability of a rate hike by December is 74.2 percent.

Gold typically loses its appeal in a high-interest rate environment because it doesn't provide interest or regular income. However, the precious metal's price is still supported by increased participation in exchange-traded funds and futures markets, concerns about the US financial strength, and continued gold purchases by central banks around the world.

Christopher Wong, precious metals strategist at OCBC, said that while there is some risk of a stabilization or correction in gold prices in the market, the overall precious metals market has a positive trend.

Meanwhile, spot silver prices fell 0.6 percent to $68.85 an ounce on Friday. Palladium prices fell 0.2 percent to $1,349.44 and platinum prices fell 0.3 percent to $1,840.78. Platinum prices are on track to decline this week.

Source: Reuters