Gold retreats on stronger dollar; traders brace for Fed
GLD•Spot gold fell 0.4% to $4,000.52 per ounce as the dollar rose to a nearly two-week high. Traders priced in an 82% chance of a U.S. rate hike in December ahead of the Fed decision and Thursday’s PCE data.
1. Dollar weighs on gold
Spot gold fell 0.4% to $4,000.52 per ounce by 1042 GMT, while U.S. gold futures for December delivery dropped 0.6% to $4,014.40. The dollar rose 0.3% to a nearly two-week high, making dollar-priced gold more expensive for holders of other currencies.
2. Fed and inflation outlook
Investors awaited the Federal Reserve’s policy meeting for clues on interest rates. Policymakers have signaled they will not raise rates this week, but traders priced in an 82% chance of a hike in December. Investors also awaited U.S. Personal Consumption Expenditures data due Thursday; an analyst said a hawkish Fed message or stronger-than-expected inflation could push gold below $4,000, potentially toward $3,900.
3. Other metals decline
Spot silver fell 1.3% to $53.23 per ounce, platinum lost 1.7% to $1,501.30 and palladium dropped 2.9% to $1,019.50.
