Gold rises after hitting seven-week low as Fed hike bets curb gains
GLD•Spot gold rose 0.7% to $4,142.89 an ounce after hitting a more than seven-week low in the previous session, while expectations of Federal Reserve rate hikes limited gains. Markets priced in a 68% chance of a rate hike in October and 95% in December.
1. Gold recovers some losses
Spot gold was up 0.7% at $4,142.89 per ounce, after falling nearly 4% in the previous session to its lowest level since August 5. U.S. gold futures settled around 0.3% higher at $4,179.70.
2. Rate expectations weigh
Gold remained below its 100-day moving average as inflation concerns reinforced expectations of tighter Federal Reserve policy. Markets saw a 68% probability of a rate hike in October and a 95% chance of an increase in December.
3. Investors await data
The dollar rose, testing several-month highs, while investors awaited ADP employment and PCE inflation data due Wednesday and nonfarm payrolls on Friday. Spot silver slipped 0.4% to $60.72, platinum fell 1.8% to $1,686.34, and palladium lost 0.5% to $1,208.24.
