Gold prices dropped on Wednesday to their lowest level since early February as investors assessed the Federal Reserve decision to keep interest rates unchanged, amid rising oil prices and renewed inflation concerns.
Spot gold fell 2.6% to $4,874.19 per ounce, while U.S. gold futures for April delivery declined 2.6% to $4,878.20.
Market analysts said expectations that interest rates may remain high for a longer period are putting pressure on gold, which does not generate yield. Rising energy prices and ongoing tensions linked to Iran have increased fears of persistent inflation, reducing the metal’s appeal to investors.
