Gold eases as traders cement bets for higher for longer interest rates
GLD•Other precious metals
Spot silver XAG= fell 0.4% to $65.76, platinum XPT= climbed 1.4% to $1,822.58, and palladium XPD= added 0.9% to $1,312.16.
Gold edges lower on Fed rate expectations
Gold prices edged lower on Tuesday as markets factored in more restrictive monetary policy from the US Federal Reserve this year, while traders also kept close tabs on the Middle East conflict.
Spot gold XAU= was down 0.3% at $4,332.34 per ounce by 9:25 a.m. ET (1325 GMT). US gold futures GCcv1 fell 0.3% to $4,370.40.
"The problem remains that despite oil trending down somewhat, the market is continuing to robustly price Fed hikes...over the last few days, we've had a bit of strength on the US dollar side, and that's typically a negative for gold," said Bart Melek, global head of commodity strategy at TD Securities.
Bullion pressured as rates stay high and oil falls
This, in turn, has pressured gold prices, which have shed over 22% since hitting an all-time high of $5,594.82/oz in January.
Although bullion is traditionally considered an inflation hedge, it loses its appeal to yield-bearing assets in a high-interest-rate environment.
Oil prices fell to a two-week low on Tuesday as prospects for Gulf supplies improved, with Iran signaling it could reopen the Strait of Hormuz within seven days and Saudi Arabia set to resume exports from the port of Yanbu.O/R
Traders price in a December hike as officials back more tightening
Traders see a 90% chance of a rate hike in December, compared with 80% last week, according to the CME FedWatch Tool.
