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Gold slips near $4,125 as hawkish Fed tone strengthens the dollar
Gold was up about 0.35% for the day, while CME Group's FedWatch shows roughly an 80% chance of a December rate hike.
Gold trimmed its intraday gains and traded near $4,125 during the early European session on Thursday, rising about 0.35% for the day.
FXStreet said the US dollar retained a bullish undertone that limited gold's bounce after it touched a two-month low the prior day, with reaction tied to the Federal Reserve's September 15 to 16 FOMC meeting minutes.
According to FXStreet, the minutes showed members voted unanimously to raise the federal funds rate target range and leaned toward further tightening, and most participants expected another hike by year end to address persistent inflation.
FXStreet also cited CME Group's FedWatch Tool, which indicates traders are pricing in about an 80% chance of a December rate increase, alongside concerns about stubborn inflation as volatile energy prices keep US bond yields elevated near multi-year highs.
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