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Gold slips to a two-week low as Fed hike odds rise
XAU/USD was last around $4,370, down nearly 1.7% on the day, after US ISM data missed forecasts.
Gold prices extended their pullback from a more-than-three-month high, falling to a fresh two-week low as traders weighed renewed expectations for Federal Reserve interest rate hikes and growing Middle East tensions, FXStreet reports.
At the time of writing, XAU/USD traded near $4,370, down about 1.7% on the day. The move came even as softer-than-expected US economic data offered some support to the US Dollar’s decline.
The US ISM Manufacturing PMI fell to 54.6 in August from 55.6 in July, below the market forecast of 55.2, while the ISM Prices Paid Index held at 71.1 versus expectations of 72.0. JOLTS job openings rose to 7.271 million in July, but were still below the 7.3 million forecast.
FXStreet also pointed to hawkish Fed repricing after commentary associated with the Jackson Hole Symposium, with traders seeing a hike as soon as the September 15 to 16 meeting. The CME FedWatch Tool showed roughly a 65.0% probability of a hike at that meeting, up from about 40% a week earlier.
Latest closeGold $4,376.80 ▼1.2%