Play store
Gold prices fell further in the global market on Tuesday, with spot gold declining 0.2% to $4,287.69 per troy ounce by noon.
On Monday, gold suffered a sharp decline, falling to its lowest level since August 7 and marking its lowest price in the international market in about a month. US gold futures also fell 0.5% to $4,328.10 an ounce.
The decline came amid renewed concerns over inflation as oil prices rose in the international market. At the same time, US consumer spending and its core index rose at their fastest pace in four months in August, raising concerns that the Federal Reserve may need to keep interest rates elevated for longer.
The Federal Reserve is scheduled to announce its interest-rate decision on Wednesday after a two-day policy meeting. The market expects the US central bank to raise its benchmark rate by 25 basis points.
Gold does not generate interest on its own. When interest rates rise, however, returns on other interest-bearing assets increase, raising the opportunity cost of holding gold. This has prompted investors to reduce their exposure to the precious metal.
According to calculations, based on the international spot price of $4,287.69 per ounce and an exchange rate of Tk123 per US dollar, the price of gold in the global market is currently around Tk197,800 per bhori.
Source: Reuters
