Gold prices fell to their lowest levels in more than 2 years on expectations of a sharp rate hike in the U.S.

Gold has fallen to its lowest level in nearly 2.5 years ahead of a two-day Fed meeting starting today, reported. During Monday, gold on the Comex exchange fell below $1670 a troy ounce to $1667.82. They reached their lowest level since April 2020 ($1677.30) for the first time last Thursday, and on Friday they fell even lower ($1662.06).

Experts and market participants are expecting the Fed to raise rates significantly - by 75 to 100 basis points - at the meeting. Raising the interest rate helps reduce gold prices, making government bonds more attractive in the eyes of investors. OANDA analyst Edward Moya said the dynamics of the precious metal were particularly negative in the days before the meeting. However, in his opinion, prices have already corrected slightly and may stabilize even before the announcement of the results, reports MarketWatch.