Gold hits seven-week low as oil surge fuels rate hike bets
GLD•Gold fell 3.5% to $4,136.81 an ounce, its lowest level since August 5, as higher oil prices, the dollar and Treasury yields weighed on the metal. Traders saw a 94% chance of a December Fed rate hike.
1. Gold slides
Spot gold was down 3.5% at $4,136.81 per ounce after touching $4,110.55, its lowest since August 5. U.S. gold futures settled 3.5% lower at $4,168.40. Oil rose about 3% after President Donald Trump rejected an Iran peace deal to resolve their conflict and reopen the Strait of Hormuz.
2. Rate hike bets rise
Higher oil prices stoked inflation concerns, while a stronger dollar and rising Treasury yields added pressure on gold. Traders saw about a 94% chance of one rate hike in December, CME's FedWatch Tool showed. Markets were focused on job openings, the ADP employment report, Personal Consumption Expenditures readings and nonfarm payrolls, all due that week.
