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Gold slips as Fed hike bets and firmer oil pressure the metal
Gold is trading near $4,400, while oil extends gains, and traders now look to upcoming US PPI and CPI for clues on Fed policy.
Gold prices stayed under pressure in US trading hours on Tuesday, even as the US dollar remained on the defensive. XAU/USD was last around $4,400 after an intraday high near $4,443, according to FXStreet.
FXStreet attributed the softness in gold to expectations for a Federal Reserve rate hike, alongside rising oil prices. The escalation in Middle East tensions followed attacks involving Iran-backed Houthis on energy facilities in four southern Saudi cities, with oil moving higher.
Oil prices extended their advance, with West Texas Intermediate trading around $91.30 per barrel after reaching $92.48, its highest level since June 8. Meanwhile, the US Dollar Index was around 98.82 after briefly reclaiming 99, hovering near its lowest level in more than two weeks.
Looking ahead, FXStreet said markets are weighing how higher oil could feed into inflation and interest rates, with gold offering no yield. Attention is turning to the Fed’s September 15 to 16 meeting, where the CME FedWatch tool points to roughly a 60.0% probability of a 25 basis point hike, ahead of US PPI on Thursday and CPI on Friday.
Latest closeGold $4,431.70 ▲1.9%|Dollar index 99.58 ▼0.1%