Comex gold contract Delivered in Dec. Minus $8.20 to close at $1,655.80 an ounce.
Investors expect The Fed will raise interest rates by 0.75% at its monetary policy meetings in November and December. After revealing the consumer price index (CPI) that was higher than expected.
If the Fed raises interest rates by 0.75% in both November and December This will result in the Fed raising interest rates by 0.75% five times in a row after rising 0.75% in June, July and September.
A rebound in interest rates will increase the opportunity cost of holding gold. Because gold is an asset that does not return in the form of interest.
Gold prices have fallen almost 10% since the beginning of this year. Experts expect gold prices to continue falling to $1,600 by the end of the year. While the Fed continues to tighten monetary policy to curb inflation.