Gold hits seven-week low as oil surge fuels rate hike bets
GLD•Gold fell more than 3% to a more than seven-week low on Monday as higher oil prices, the dollar and Treasury yields fueled inflation concerns and rate-hike bets. Traders saw a 94% chance of a Fed rate hike in December.
1. Gold falls sharply
Spot gold was down 3.3% at $4,146.51 per ounce as of 9:25 a.m. ET, after hitting its lowest level since August 5. U.S. gold futures also fell 3.3%, to $4,178.40.
2. Rates and inflation bets
Oil rose about 3% after U.S. President Donald Trump rejected an Iranian peace deal to resolve the conflict and reopen the Strait of Hormuz. Higher oil prices stoked inflation concerns, while the dollar held near a two-month high and Treasury yields extended gains. Traders saw about a 94% chance of a December rate hike, and U.S. job openings, ADP employment, PCE and nonfarm payrolls data were due this week.
