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Gold falls below $4,400 as easing inflation lifts Fed hold bets
Bullion dropped as much as 1.5% to $4,343.91 an ounce, while money markets priced in less than a 40% chance of a September rate hike.
Gold prices slipped below $4,400 an ounce, extending losses after signs of cooling US inflation strengthened expectations the Federal Reserve will hold interest rates steady at its next meeting.
According to LiveMint Markets, bullion fell as much as 1.5% to $4,343.91 an ounce on Thursday, and spot gold was down 1.3% to $4,350.02 in New York as of 4:44 p.m.
The move reflects July US wholesale inflation decelerating more than expected, driven by lower energy and food costs, with money markets now pricing in less than a 40% chance of a September rate increase.
Investors also turned to upcoming employment data before the Fed meeting and attention to Chairman Kevin Warsh’s remarks at the central bank’s Jackson Hole symposium later in August, while risks of renewed Middle East flare-ups could lift energy prices and potentially reintroduce inflation concerns; silver was down 1.4% to $64.42 an ounce, and platinum and palladium also declined.
Latest closeGold $4,408.20 ▼0.0%|Silver $64.53 ▼1.6%|Platinum $1,722.70 ▼2.2%