Gold hits seven-week low as oil surge fuels rate hike bets
GLD•Gold fell as much as 4% to a more than seven-week low as rising oil prices fueled inflation concerns and rate-hike bets. Spot gold was down 3.8% at $4,121.58 per ounce, while traders saw a 94% chance of a Fed rate hike in December.
1. Gold falls sharply
Gold lost 4% on Monday, hitting $4,110.55 per ounce, its lowest level since August 5. Spot gold was down 3.8% at $4,121.58, and U.S. gold futures fell 3.9% to $4,153.70.
2. Oil and rate concerns
Oil rose about 3% after U.S. President Donald Trump rejected an Iran peace deal to resolve their conflict and reopen the Strait of Hormuz. Rising oil prices stoked inflation concerns, while a stronger dollar and higher Treasury yields added pressure on gold. Traders saw about a 94% chance of one Fed rate hike in December, and U.S. inflation and employment data were due this week.
3. Other metals decline
Spot silver fell 5% to $61.09 per ounce, platinum declined 3.6% to $1,714.04, and palladium lost 4.1% to $1,215.25.
