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Gold eases as Fed hike bets and US-Iran tensions strengthen the dollar
Traders are pricing about a 65% chance of a Fed rate increase at the September 15-16 meeting, a backdrop that typically pressures bullion.
Gold prices are slipping as rising bets for an imminent Federal Reserve rate hike and heightened US-Iran tensions bolster the US dollar, according to an FXStreet market update.
The report points to Fed Chair Kevin Warsh's hawkish comments at the Jackson Hole Symposium, which lifted expectations that the central bank could raise borrowing costs if inflation does not slow sufficiently.
It also cites renewed inflation worries tied to higher energy prices as geopolitical risk escalates, including US forces striking rocket launchers on Iran's Larak Island and Iran reporting drone attacks on US-linked sites.
With traders expected to wait for upcoming US macro data, FXStreet notes the week begins with releases including ISM Manufacturing PMI and JOLTS, while focus later turns to the Nonfarm Payrolls report on Friday, and it frames the near-term setup as favoring a weaker path for gold.
Latest closeGold $4,509.30 ▲0.7%