Gold Prices Fall to Nearly Two-Week Low in Global Markets

Gold prices fell sharply in international markets on Monday, August 31, reaching their lowest level in nearly two weeks as expectations of higher US interest rates strengthened and concerns over inflation increased.

The decline followed recent comments by US Federal Reserve Chair Kevin Warsh, which fueled expectations that interest rates could remain higher. Rising crude oil prices have also added to concerns about inflation, putting further pressure on gold.

At 8:30pm Bangladesh time, spot gold was down 0.8%, trading at $4,419.38 per ounce. US gold futures for December delivery fell 1.2% to $4,473.50 per ounce.

Daniel Pavilonis, senior market strategist at StoneX, told Reuters that expectations of higher interest rates and the connection between rising energy prices and inflation were the main factors behind the decline in gold prices.

He also noted that US Treasury yields and the dollar have been strengthening steadily, leaving gold in a more vulnerable position.

Other precious metals also recorded losses. Silver fell 0.4% to $66.13 per ounce, while platinum declined 1.8% to $1,787.63. Palladium dropped nearly 4% to $1,365.09 per ounce.

Meanwhile, gold prices remain high in Bangladesh. Including VAT, the price of 22-carat gold jewellery is currently Tk 236,254 per bhori. The price of 21-carat gold is Tk 225,640, while 18-carat gold costs Tk 193,739 per bhori. Gold jewellery made under the traditional system is priced at Tk 158,280 per bhori.