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Gold slips in US trading as Fed hike bets and oil inflation risks weigh
XAU/USD was last around $4,414, down 0.35%, with markets pricing about a 58% chance of a September 15-16 Fed hike, while higher WTI near $91 a barrel keeps energy-driven inflation concerns in focus.
Gold traded with a modest downside bias during American trading hours on Monday, with XAU/USD around $4,414, down 0.35% on the day after an intraday low near $4,381, according to FXStreet.
FXStreet said a softer US dollar helped limit the decline, but follow-through buying remained constrained as investors focused on Federal Reserve rate hike concerns after the US employment report. Data released Friday showed US Nonfarm Payrolls rose by 162K in August versus a forecast of 56K, while the unemployment rate held at 4.1%.
The outlet added that rising oil prices are also weighing on gold sentiment, citing ongoing US and Iran tensions after the US military struck Iranian crude oil tankers and further reports including a strike at Saudi Aramco’s Jazan refinery. West Texas Intermediate was around $91 per barrel, close to its highest level since July, keeping inflation risks on the radar.
Looking ahead, FXStreet noted gold is likely to stay sensitive to Fed rate expectations and developments in the Middle East, with CME FedWatch indicating roughly a 58% chance of a rate hike at the September 15-16 meeting. The week also includes US PPI on Thursday and CPI on Friday.
Latest closeGold $4,431.70 ▲1.9%|WTI crude $90.70 ▲0.5%