Gold Slips as Investors Weigh Fed Rate Outlook
Traders cut odds of a quarter-point rate hike below 20% as higher oil prices stoked inflation worries and kept pressure on bullion.
- On Friday, spot gold fell 0.1% to $4,018.69 per ounce, hitting its lowest level since August 3 as resilient U.S. economic data fueled expectations that the Federal Reserve would keep interest rates higher for longer.
- Higher Treasury yields have pressured gold prices this week, as the non-yielding asset loses appeal when borrowing costs rise, according to market analysts and commodity data.
- Surging oil prices continue fueling inflationary concerns, reinforcing trader expectations of a 90% probability for a Fed rate hike in December, even as the central bank is expected to skip increases next week.
- Following remarks by Federal Reserve Chair Kevin Warsh, traders pared bets on near-term rate hikes, though persistent inflationary pressures kept the metal under pressure ahead of the policy meeting.
- Investors now focus on upcoming U.S. Personal Consumption Expenditures data, the Fed's preferred inflation gauge, to determine if persistent price pressures will force further monetary tightening before year-end.
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Gold Heads for Steepest Weekly Loss in Months as Oil Prices Raise Inflation Concerns
Gold prices approached the $4,000-per-ounce mark as rising oil costs heightened fears that US interest rates could stay high for longer. Investors are monitoring the ... The post Gold Heads for Steepest Weekly Loss in Months as Oil Prices Raise Inflation Concerns first appeared on [your]NEWS.
Gold prices declined for the fourth consecutive session, with oil rising and renewed inflation concerns, amid investors looking forward to the Federal Reserve Council meeting and US inflation data to look forward to the interest rate path during the period of the US dollar and the US dollar.
Gold dips for fourth session as oil rally fans inflation concerns
Future gold contracts closed this Tuesday (20) in a session marked by volatility in the oil prices and revenues of the Treasures, reflecting the shift in the news on the level of negotiations between the United States and Iran. Investors also await the monetary policy decision of the Federal Reserve (Fed) next week, amidst rising inflationary pressures. In Comex, the metal division of the New York Mercantile Exchange (Nymex), future gold contrac…
Gold Holds Decline as Energy-Led Inflation Weighs on Rate Path
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