Commodities
Home›Commodities›Precious Metals›Gold slips toward $4,290 as Fed rate-hike expectations…
Gold slips toward $4,290 as Fed rate-hike expectations rise
CME FedWatch puts the probability of a 25 basis point Fed hike in October at 69.7%, up from 48.7% a week ago.
Gold prices dropped to near $4,290 in early Asian trading Thursday, losing momentum as hawkish signals from Federal Reserve policymakers pushed up expectations for additional rate hikes.
FXStreet reports that Fed Governor Michael Barr said further policy adjustments are likely needed to control inflation, while Richmond Fed President Tom Barkin and Boston Fed President Susan Collins backed the recent rate increase citing continued inflation pressures.
According to the CME FedWatch tool, the odds of a quarter-point hike in October were around 69.7% after the latest developments, up from 48.7% a week earlier. Analysts say higher rates tend to weigh on gold because the metal does not pay interest.
The news also pointed to strong China-linked demand, with ING reporting China physical gold imports rose 39.3% year-on-year to 141.7 tonnes in August. ING said year-to-date imports reached a record 1,141.2 tonnes, and it attributed the rise to lower gold prices, a stronger yuan, and persistent domestic price premiums.
Latest closeGold $4,323.20 ▼1.2%