Kuala lumpur: Gold prices are likely to hover between US$3,800 and US$4,200 (US$1=RM4.071) per troy ounce amid pressure from crude oil prices and inflation, Go Capital Growth Sdn Bhd general manager Hong Kok Wah said.

According to BERNAMA News Agency, in ringgit terms, the general manager of the precious metals trading company stated that gold prices could range between RM450 and RM520 per gramme. The market has been anticipating a potential interest rate hike in the United States this year to curb inflation, which has been impacted by rising oil prices, consequently affecting precious metal prices.

Hong Kok Wah noted, "The US is expected to increase its interest rates this year because of inflation. If they raise interest rates, gold prices are likely to remain on the lower side." This was mentioned during his address at the Pos Malaysia Bhd's Pos ArRahnu Gold-i launch ceremony.

He further explained that gold prices could see an upward trend next year if the economy underperforms. "When the US Federal Reserve raises interest rates, it will create a drag on the economy. During that period, economic performance may weaken, hence supporting gold prices," he added.

Recently, bullion experienced a decline, falling as much as 1.4 percent to near US$4,060 per troy ounce on Monday from Friday's close, mirroring the entire percentage decline observed last week. At the time of writing, spot gold had dropped 1.11 percent, settling at US$4,068.20 per troy ounce.