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Gold hovers near an eight-week low as Fed-hike bets weigh
Gold is trading around the $4,100 area after hitting its lowest level since August 4, as expectations for more Fed tightening remain elevated.
Gold prices are struggling to extend a modest uptick in Tuesday’s Asian session, trading near their lowest level since August 4 around the $4,100 area, according to FXStreet.
FXStreet links the dour tone for bullion to a hawkish US Federal Reserve outlook, elevated US bond yields, and geopolitical risks that keep the US dollar near a two-month high.
The US central bank delivered a widely expected 25 basis point rate hike earlier this month, its first in over three years, and signaled it remains committed to suppressing sticky inflation.
FXStreet also cites CME Group’s FedWatch Tool, showing traders pricing a 70% chance of another borrowing-cost increase in October amid inflation risks tied to higher energy prices from the Middle East conflict.
Latest closeGold $4,147.50 ▼4.0%