Gold Prices Drop as US Interest Rate Decision Looms

Gold prices fell on Monday as traders prepared for a potentially split decision on US interest rates this week. A fragile ceasefire in the Middle East also helped ease concerns about rising inflation, reducing demand for the safe-haven metal. The decline comes ahead of the Federal Reserve’s meeting, where policymakers are expected to debate whether to raise rates again. Any increase would make bonds and savings accounts more attractive compared to gold, which does not pay interest. Analysts warn that uncertainty over the rate decision could keep gold volatile in the coming days. Meanwhile, the pause in Middle East hostilities has temporarily cooled fears of supply disruptions that could push up energy and commodity prices.