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Gold slides to a two-month low as USD strength persists

Gold is pressing toward the $4,100 level, with traders waiting for a breakdown before adding bearish positions, even as Fed hike odds have eased.

Reported · Written up by our desk · Precious Metals

Gold fell to a two-month low in Tuesday's Asian session, as fresh selling pushed the yellow metal lower after a prior day of consolidation, according to FXStreet.

The outlet said the U.S. dollar has kept a bullish tone despite waning expectations for an October Federal Reserve rate hike, continuing to weigh on demand for gold.

FXStreet also pointed to last week's U.S. macro data showing moderating inflation and a slight cooling in the labor market, while crude oil held near a four-week low after resilient Middle Eastern crude exports and a G7 emergency stockpile release eased supply concerns.

Still, traders were pricing in more than an 85% chance the Fed will raise borrowing costs again by the end of the year, and Deutsche Bank economists argued softer headline payrolls did not change the broader labor market picture.

Latest closeGold $4,150.40 ▼0.3%|WTI crude $89.70 ▼1.6%

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