International gold prices fell sharply by more than US$100 an ounce on Thursday as rising oil prices added to inflationary pressures and led markets to expect the US Federal Reserve to keep interest rates high for longer, according to Reuters.
Trading data showed spot gold fell 2.85% to US$4,014.56 an ounce, its lowest level since early August. US gold futures closed 2.2% lower at US$4,060.40 an ounce.
In Cambodia's market, reported prices as of 9:30 a.m. Wednesday were US$4,905 per tael for sales and US$4,855 per tael for purchases.
A key factor driving the fall was an approximately 3% increase in international oil prices to their highest level in five months. This followed Houthi attacks on Saudi Arabia, which raised concerns about disruption to energy supplies from the Middle East.
Market analysts explained that higher energy prices could fuel inflation and increase the likelihood of the Fed keeping interest rates high. This could weigh on gold, which does not pay interest, while interest-bearing assets could become more attractive to investors. Text: សុភ័ក្រ្ត
