Gold prices will fluctuate but unlikely to dip below US$1,500: traders

Gold prices will continue to fluctuate ahead of the US Federal Reserve’s expected interest rate hike later this week, but the cost per ounce of the precious metal is unlikely to dip below the US$1,500 level, traders said on Monday (Sep 19).

Speaking at an event organised by Bursa Malaysia in Kuala Lumpur, Singapore Bullion Market Association chief executive officer Albert Cheng said the current dip was driven by the high interest rate environment. He added that gold prices will stay at its current levels “for a while, but they will not go below US$1,500”.

Gold prices fell on Monday due largely to a stronger greenback as investors ready themselves for more interest rate hikes by the Fed and other central banks during the week as they seek to rein in higher inflation.