Gold loses shine as rate hike bets foster a stronger dollar
GLD•Fed officials keep rate hike bets elevated
Fed policymakers struck a hawkish tone this week, with Richmond Fed President Tom Barkin and Boston Fed President Susan Collins both voicing support for last week's rise in interest rates given concerns about inflation.
The comments follow those of other Fed officials who have broadened their concerns about inflation — they feel it is being driven increasingly by strong demand in the economy, and not just by energy, tariff and other supply issues that might be expected to fade on their own.
Although bullion is a traditional inflation hedge, rising interest rates can reduce its appeal as investors gravitate toward interest-bearing assets.
Traders currently see a 53% chance of a rate hike in October, and a 91% chance of one in December, according to CME's FedWatch Tool.
Trump Iran warning and other metals decline
US President Donald Trump warned on Tuesday that he could "annihilate" Iran. Brent futures LCOc1 rose above the $100 a barrel mark but held near a two-week low.
Bullion has adopted an almost inverse relationship to oil prices since the US-Israeli war on Iran broke out in late February, weighed down by fears of inflation and tighter monetary policy from central banks as energy prices rose.
Among other metals, spot silver XAG= fell 3% to $65.05 per ounce, platinum XPT= lost 3.7% to $1,767.73, and palladium XPD= declined 3% to $1,268.84.
