Gold falls on growing Fed rate hike bets ahead of policy meeting
Hotter U.S. inflation and a 2% oil jump lifted odds of a Fed rate hike to 86.5%, pressuring non-yielding bullion.
- Gold prices eased on Monday as a surge in oil prices stoked inflation concerns, boosting expectations that the Federal Reserve may raise interest rates at its policy meeting this week.
- Fresh Houthi strikes on Saudi Arabia and Iranian attacks on ships in the Gulf compounded supply concerns on Monday, sending oil prices up more than 2% following closure of a key Saudi pipeline.
- Traders are pricing in an 86.5 percent probability of a rate hike at the Federal Reserve's policy meeting on Tuesday and Wednesday, up from about 67 percent before last week's inflation data, according to the CME FedWatch Tool.
- The BOJ is widely expected to raise rates on Friday as persistent inflation and resilient economic growth have raised the prospect of further rate hikes by major central banks amid rising energy prices.
- Tim Waterer, chief market analyst at KCM Trade, said "dips should still find buyers as an uncertainty hedge while geopolitics and rate policy remain fluid," despite rising energy prices delivering a yield headwind for gold.
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Price of gold per ounce at $4,290, down 1.4%
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Gold Slips as Oil Rally Boosts Fed Rate-Hike Expectations
Gold prices declined as higher oil prices intensified inflation concerns and increased expectations that the U.S. Federal Reserve will raise interest rates this week. Traders ... The post Gold Slips as Oil Rally Boosts Fed Rate-Hike Expectations first appeared on [your]NEWS.
Gold declined with rising oil prices and renewed inflation concerns, while prospects for raising US interest this week increased to 86%, although Goldman Sachs continued to expect metal to reach $4,900.
The stock markets remain chained to the rising oil price: the escalation in Saudi Arabia fuels the fears of an increase in inflation. Investors are eagerly looking at the US Federal Reserve's interest rate decision.
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برس بيGold prices edged lower on Monday as rising oil prices exacerbated inflation concerns and bolstered expectations that the Federal Reserve might raise interest rates at its policy meeting this week. Spot gold was down 0.5 percent at $4,327.80 per ounce by 0119 GMT, after posting its third straight weekly decline on Friday. U.S. gold futures for December delivery fell nearly 1 percent to $4,368.60. Among other precious metals, spot silver fell 1.1…
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