Gold hits more than one-week low on firm dollar, Fed hike bets
GLD•GLD•GLD•GLD•Spot gold fell 0.7% to $3,959.03 an ounce after reaching its lowest level since November 4, as stronger US inflation data and hawkish Fed remarks boosted the dollar and rate-hike expectations. Traders await US producer price data due Friday.
Spot gold fell 0.7% to $3,959.03 per ounce by 0732 GMT on Thursday, after touching its lowest level since November 4. US gold futures for December delivery dropped 0.9% to $3,964.50.
The dollar climbed to a 19-month high after stronger-than-expected US inflation data and hawkish remarks from Federal Reserve officials boosted expectations of an interest-rate hike next month. Traders are pricing in a hike next month and another in March, while market participants await the US Producer Price Index report due Friday.
OCBC analysts said near-term risks remain two-sided and that oil prices, yields and the dollar are important drivers, but they are not turning bearish on gold’s medium-term prospects. Spot palladium rose 0.5% to $1,032.83 per ounce.
