International Gold Price Declines to $4,200 per Ounce

Gold prices on international markets have fallen, reaching $4,200 per ounce. The price decline is driven by the strengthening of the US dollar and expectations of potential interest rate increases.

The situation regarding tensions with Iran is also significant. Following the downing of an American military helicopter near the Strait of Hormuz, Washington carried out retaliatory strikes on Iranian targets. This has increased oil prices and intensified inflation expectations.

Economists predict that annual inflation in May will reach 4.2 percent. Against this backdrop, a large portion of market participants expect the Federal Reserve to raise interest rates by December.

High interest rates are a negative factor for gold, as gold does not provide investors with interest income. Therefore, when returns on other assets increase, holding gold becomes less attractive.

Along with gold, other precious metals have also become cheaper. Silver prices declined by 1 percent, while platinum fell by 3 percent.

Source: Investing.com