Gold, silver and Bitcoin prices fell as investors reassessed the path of interest rates by the US Federal Reserve.

Specifically, according to CNBC, precious metals were among the assets that remained firmly in negative territory on Wednesday, as concerns over inflation and the Fed’s interest rate path weighed on investor sentiment.

The spot price of gold, at 2 p.m. Cyprus time, was down 2.4%, trading at around $4,161.63 per ounce. US gold futures were also down 2.2%, at $4,194.90 per ounce.

Meanwhile, the spot price of silver fell by 2% to $64.01 per ounce, offsetting larger losses recorded earlier. US silver futures were down 1.6%.

Bitcoin also came under further pressure, falling by around 1.3% to $61,049.25.

Stocks and exchange-traded funds linked to gold and silver also declined in premarket trading on Wednesday.

European and Asian stocks were also broadly lower, while US stock futures fell ahead of the opening of the Wall Street session.

Ewa Manthey, commodities strategist at ING, told CNBC that gold and silver are under pressure as the market’s focus shifts back to interest rates and inflation, rather than purely safe-haven demand.

“The escalation in the Middle East is pushing oil higher and increasing inflation risks, which in turn strengthens expectations that central banks will remain tighter for longer,” she added.

Money markets are currently pricing in a 98.2% probability that the Fed will keep its benchmark interest rate unchanged at next week’s FOMC meeting, according to CME’s FedWatch tool.

Traders now see an approximately 40% chance of an increase by the Fed’s meeting in October.

Meanwhile, the European Central Bank is also widely expected to raise interest rates by 25 basis points at its own monetary policy meeting next Thursday, according to LSEG data.

Source: CNA