Gold at one-week low as higher oil, hawkish Fed weigh
GLD•Spot gold fell 0.4% to $4,271.16 an ounce after reaching its lowest level since September 16, as oil prices rose and hawkish Federal Reserve rhetoric supported expectations for higher interest rates.
1. Gold prices decline
Spot gold was down 0.4% at $4,271.16 per ounce at 9:35 a.m. ET after hitting its lowest level since September 16. U.S. gold futures for December delivery fell 0.3% to $4,306.
2. Rates and oil pressure bullion
Oil prices rose more than 1%, while the dollar reached a two-month high and 10-year Treasury yields hovered near a two-decade high. The article said higher energy prices may add to inflation pressures and that rising interest rates reduce gold’s appeal; traders were pricing a 66% chance of a rate hike in October.
3. Other metals mixed
Spot silver fell 1.8% to $63.29 per ounce, platinum slipped 0.2% to $1,746.44, and palladium gained 0.5% to $1,266.40.
