At the same time, the price of gold futures in the United States set for delivery next December also fell 0.4 percent to $4,142.70 per ounce.
According to market analysts, if fuel oil prices rise due to fresh geopolitical tensions in the Middle East, there is a risk that inflation will increase further. As a result, this has affected the gold market amid fears that the US central bank, the Federal Reserve (Fed), may keep interest rates high for a long time. Usually, in a high interest rate environment, gold's appeal as a non-interest-bearing asset decreases.
The Federal Reserve's next policy meeting is scheduled to be held on October 27 and 28. Meanwhile, according to CME's FedWatch tool, 91 percent of market investors believe interest rates may rise in December.
