Home›Commodities›Precious Metals›Gold rises for second session as Fed July hike odds fa…

Gold rises for second session as Fed July hike odds fall

ING strategists point to softer US producer price data weighing on the dollar and Treasury yields, with markets assigning a 12% July hike probability versus nearly 31% a week ago.

Reported · Written up by our desk · Precious Metals

Gold climbed for a second straight session as ING strategists said softer US producer price data pressured the dollar and Treasury yields, which lowered expectations for near-term Federal Reserve tightening.

ING also noted that markets have cut the odds of a July rate hike, now pricing only a 12% chance, down from almost 31% a week earlier, a shift that the strategists said is supportive for gold.

Despite the tailwind from easing rate expectations, ING cautioned that gains may be capped by ongoing Middle East tensions and elevated energy prices, which can feed inflation concerns.

Latest closeGold $4,067.10 ▲0.1%

More like this

Sources