Gold prices fall below $4,000 as analysts say the market is weighing high interest rate risks

ChainCatcher news, according to Golden Ten Data, the price of gold has fallen below $4,000 per ounce and is expected to record a single-week drop of more than 3%. The escalating hostilities between the United States and Iran have heightened market concerns. Rising energy prices may keep inflation elevated and prompt the Federal Reserve to raise interest rates.

Mitsubishi UFJ Financial Group analyst Soojin Kim stated that recent price trends indicate the market is placing greater emphasis on the possibility that US interest rates will remain high for a longer period, rather than gold’s traditional role as a safe haven.