Gold drops more than 2% on US rate-hike bets
GLD•Spot gold fell 2.7% to $4,171.85 an ounce, its lowest since early August, as rising oil prices heightened inflation concerns and reinforced expectations of further US rate hikes. Spot silver fell 4.3%.
1. Gold falls as yields rise
Spot gold was down 2.7% at $4,171.85 per ounce, while US gold futures fell 2.7% to $4,204.30. Higher oil prices and bond yields weighed on gold as investors focused on inflation and the prospect of further Federal Reserve rate hikes.
2. Investors await US data
Traders are pricing in a 69% chance of a US rate hike in October. Investors will watch US job openings, the ADP employment report, the PCE price index and nonfarm payrolls this week. Spot silver fell 4.3% to $61.51 an ounce; platinum dropped 2.8% and palladium lost 3.1%.
