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Gold stays under $4,150 as hawkish Fed tone lifts the dollar
CME FedWatch pricing shows about an 80.0% chance of a December rate hike, while elevated bond yields tied to stubborn inflation also weigh on the non-yielding metal.
Gold (XAU/USD) is holding below $4,150 during Thursday’s Asian session, after failing to extend a modest intraday advance, according to FXStreet.
FXStreet cites minutes from the September 15 to 16 FOMC meeting that described unanimous support for raising the federal funds rate target range and a leaning toward further tightening, with many participants viewing another hike as appropriate by year end to address persistent inflation.
The article also points to the dollar’s bullish undertone and notes that FedWatch pricing still implies roughly an 80.0% chance the Fed will raise borrowing costs in December, which FXStreet says helps cap gold.
FXStreet adds that concerns about inflation staying stickier than expected, amid volatile energy prices, have kept US bond yields near multi-year highs, further pressuring the non-yielding precious metal.
Latest closeGold $4,157.80 ▲0.4%