Interest rate expectations led to a decline in gold and commodities

Gold fell 1.5% to $1,697 after the US inflation data.

Following the announcement of the inflation rate in the US, which failed to show the expected decline, the expectation that the Fed will raise interest rates by 75 basis points for the third time on September 21 has strengthened. While the dollar index rose 1% and rose above the 109 level again, precious metals declined. Although ounce gold tested below $ 1,700 last week, this base was maintained. The daily closing level will be monitored in the price, which tested below $ 1,700 again today. Silver, which rose 5% yesterday, fell to $ 19.37 today and fell on a daily basis today after a 4-day rise. The biggest daily loss among precious metals is in palladium. Palladium fell 5.5% to 2,154 today. Gram gold, which fell to 996 TL with the effect of the loss in ounce gold, is also down 1%. Inflation in the US is far from the target The fall in gasoline prices was the main reason for the decline in inflation in August. However, rising food prices and the increase in insurance and health care costs in the last month were the main reasons why inflation did not fall as much as expected. The Fed's medium-term inflation target is 2%. While the Fed believes that this rate will take time, it also expects inflation to rise again towards winter. Therefore, front-loaded interest rate hikes are expected to continue at this meeting. Follow Global Economic Developments on Social Media! Click here to follow Ieconomy official Facebook account! Click here to follow Ieconomy official Instagram account! Click here to follow Ieconomy official Twitter account!