Gold prices fall in anticipation of Fed policy tightening

Gold prices on February 10 morning declined, while the continued high inflation should encourage regulators to continue to tighten monetary policy, Report informs referring to the auction data.

The price of April gold futures on the New York Comex exchange fell by $13.45, or 0.72%, to $1,865.05 per troy ounce. March silver futures fell 1.17% to $21.883 an ounce.

Traders, in particular, continue to assess the prospects for the policy of the US Federal Reserve System (FRS) and the pace at which the refinancing rate will increase further amid slowing but still high inflation.

If, as a result of tightening monetary policy, inflation in the US falls, this will have a negative effect on gold as a safe-haven asset in an era of high consumer prices. Also, such a policy is positive for the US currency, which reduces dollar-denominated prices for commodities, which include precious metals.