Gold drops more than 1% on US rate-hike bets
GLD•Spot gold fell 1.5% to $4,223.95 per ounce as higher oil prices heightened inflation concerns and reinforced expectations of further Federal Reserve rate hikes. Silver, platinum and palladium each fell more than 2%.
1. Gold prices fall
Spot gold was down 1.5% at $4,223.95 per ounce, while US gold futures fell 1.5% to $4,257.90. Oil prices rose more than 1%, adding to inflation concerns and expectations of further rate hikes.
2. Rate outlook and data
Traders priced in a 66% chance of a US rate hike in October. Investors were watching for US job openings, the ADP employment report, the PCE price index and nonfarm payrolls this week. Tim Waterer of KCM Trade said stronger-than-expected inflation or employment figures could keep upward pressure on bond yields and weigh further on gold.
3. Other metals decline
Spot silver fell 2.6% to $62.64 per ounce, platinum was down 2.1% at $1,741.45 and palladium lost 2.1% to $1,239.95.
