Gold extends losses to one-week low as dollar rallies on Fed hike bets
GLD•Gold fell 1% to $3,948.82 an ounce, its lowest since November 4, as the dollar climbed and traders priced in further Federal Reserve tightening. Markets saw a 91% chance of a 25-basis-point December rate hike and a 10% chance of a 50-basis-point move.
1. Gold extends losses
Spot gold fell 1% to $3,948.82 per ounce by 1114 GMT on Thursday, after touching its lowest level since November 4. U.S. gold futures for December delivery fell 1.1% to $3,954.50 per ounce.
2. Rate hike bets rise
Expectations of further Federal Reserve tightening and hawkish comments from policymakers weighed on gold as the dollar reached a 19-month high. Markets saw a 91% chance of a 25-basis-point rate hike in December and a 10% chance of a 50-basis-point move, up from zero before the latest inflation data. Investors were awaiting U.S. producer inflation data due Friday.
