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Gold bounces near $4,100 as Fed-hike odds cool

Reported · Written up by our desk · Precious Metals

Gold prices staged a modest recovery from the $4,100 area, after hitting a two-month low earlier Tuesday, though upside appeared limited, according to FXStreet.

FXStreet attributed the bounce in part to a pause in the US dollar following its recent strong move from the September monthly swing low, which helped support non-yielding bullion.

The outlet also pointed to receding expectations for an October Federal Reserve rate hike, alongside last week’s US macro data showing moderating inflation and slight cooling in the labor market.

Despite the rebound, FXStreet said the broader fundamental backdrop remains bearish for gold, with traders still pricing in more than an 85% chance the Fed will raise borrowing costs again by the end of the year.

Latest closeGold $4,150.40 ▼0.3%

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