Gold slips below $4,000 an ounce on the world market, heading for a second straight monthly fall
Gold prices have fallen again on the world market under the impact of geopolitical tension and a stronger dollar. Reuters reports that at the start of trading the price of the precious metal dropped below $4,000 per ounce.
On Friday (October 30), at around 8:55 a.m. Bangladesh time, spot gold fell 0.6 percent to stand at $3,997.39 per ounce.
At the same time, US gold futures for December delivery also fell 0.6 percent, dropping to $4,007.80 per ounce.
Reuters says the pressure on the gold market has built up as expectations of an interest-rate increase strengthened after US inflation rose. Gold is now on course for a fall for the second straight month.
US inflation increased in September, driven in particular by higher energy and other goods prices. As a result, expectations have strengthened that the country's central bank, the Federal Reserve, could raise interest rates next December. Market forecasts put the probability of a rate hike at around 75 percent.
Higher interest rates usually reduce demand for gold, because gold yields no interest or return; when rates rise, interest-bearing assets become more attractive to investors.
Gold was not the only precious metal to fall on Friday. In the spot market, silver dropped 2.1 percent to $51.27 per ounce. Platinum fell to $1,458.85 and palladium dropped to $986.08.
