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Gold holds near late-summer lows as Fed-hike odds stay high
Fed minutes showed all 19 FOMC members supported a September rate hike, and traders place December hike odds at about 78%.
Gold traded around $4,130 per ounce on Thursday, hovering near its lowest levels since early August despite a rebound attempt, Action Forex said.
The outlet linked the renewed pressure on gold to the release of the Fed minutes, which kept alive expectations for another US rate hike before year-end. According to Action Forex, the minutes indicated all 19 FOMC members backed the September hike, and most participants viewed an additional hike before year-end as likely appropriate.
Action Forex also cited elevated oil prices as a second inflation-related factor weighing on gold. It added that markets are pricing in a December rate hike probability of around 78%, while largely expecting a pause at the October meeting.
For oil, Action Forex pointed to reports that the Trump administration asked the Pentagon to prepare options for strikes against Iran, potentially before the mid-term elections, and noted risks to shipping through the Strait of Hormuz remain elevated.
Latest closeGold $4,150.40 ▼0.3%