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9/28/2022, 10:41 AM (Source: TeleTrader)
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Precious metals drop as fears of interest rate hikes surge

Prices of precious metals declined on Wednesday after the Federal Reserve officials underscored that policymakers' objective remains to tackle the raging inflation in the United States, hinting that a terminal interest rate is estimated to peak at around 4.5%, seemingly pushing the American currency to strengthen against major currencies.

The day before, Federal Reserve Bank of Minneapolis President Neel Kashkari underlined that the Federal Reserve would not lower interest rates in the event that the nation's economy weakened. The hawkish remarks likely pushed the safe haven asset to plunge to its lowest level since April 2020 today. Earlier this week, yields on the United States Treasury notes rose to a twelve-year high.

Gold decreased by 0.62% to $1,619.16 per ounce at 4:16 am ET. At the same time, silver lost 1.85% to $18.06 per ounce.

Simultaneously, platinum declined 1.30% to $840.87 per ounce, while palladium fell by 1.43% to $2,042.97 per ounce.

Baha Breaking News (BBN) / MM