Gold faces price fall amid rising inflation

War could push metal below $5,000

- NAREERAT WIRIYAPONG

A selection of gold coins on display at the Axel Harbaum-Neuhaus goldsmith's shop in Bonn, Germany.

(REUTERS)

Gold prices could slide below US$5,000 an ounce if rising energy prices and mounting inflation concerns stemming from war in the Middle East prompts the Federal Reserve's meeting this week to signal fewer or no interest rate cuts this year, traders say.

While the market widely expects the US central bank to maintain the federal funds rate at 3.50-3.75% at its meeting on March 17-18, Warut Rung-kham, head of analysis at YLG Bullion & Futures Co, said investors are keenly awaiting a statement from the Fed on the potential for rate cuts later this year.