Gold Prices are Falling Today - Economist

Gold prices continued to decline during trading today, Monday, April 24, 2023, for the second session in a row, as investors focus shifted to the Federal Reserve's meetings to clarify its strategies to raise interest rates, which may highlight any progress in curbing the high inflation rate.

Gold prices fell in spot transactions by 0.1%, and its price reached $1981 an ounce, and gold prices in US futures contracts stabilized at $1990.20.  

And if we look at the relationship between the interest rate and the price of gold, we find that the increase in the interest rate increases the opportunity cost of possessing the gold metal that does not generate returns in the short term. 

In the same context, we find that the price of gold declined by more than 1% on Friday, after the publication of surveys that showed that commercial activity in the United States of America and the euro area increased its pace in April 2023 and that the markets are betting by 88.6% that the Federal Reserve will raise interest rates by 25 basis points. At its scheduled meeting in early May.