Gold Prices Plummet Sharply

On Wednesday, gold prices dropped as investors exercised caution, assessing the economic impact of the conflict in the Middle East on the forthcoming monetary policy decisions of the U.S. Federal Reserve (Fed), Reuters reports.

As of 04:42 Greenwich Mean Time, the spot price of gold fell by 0.4% to $4,984.29 per ounce. Meanwhile, gold futures for April in the U.S. also decreased by 0.4%, reaching $4,987.30.

The future movement of gold prices will largely depend on the Fed's policy... Will the Fed still consider the possibility of a rate adjustment this year, or will it begin to prepare to keep rates unchanged due to heightened instability in the Middle East?” noted Kelvin Wong, senior analyst at the international financial firm OANDA.