Gold prices have fallen to a three-week low as inflation in the United Kingdom hit double digit
levels, raising the prospect of more interest rate hikes by central banks around the world.
The price of gold fell as much as 0.9% to its lowest level since September 28 as data showed
British consumer prices in September hit a 40-year high of 10.1%, exceeding economists'
expectations.
The U.S. dollar has strengthened in recent weeks, rising 0.3% in European trading as investors
flee to the safety of the greenback amid mounting economic uncertainty.
Gold is currently priced at $1,640.73 U.S. per ounce. The price of the precious metal is now
down about 20% from a peak reached in March of this year.
Economists say the strengthening U.S. currency is likely to remain a headwind for gold prices
as the U.S. Federal Reserve continues to raise interest rates in coming months to dampen
inflation that is also running at a 40-year high in America.
