Gold rises after hitting seven-week low, Fed hike bets curb advance
GLD•Gold climbed 1% to $4,155.73 an ounce after falling to a more than seven-week low in the prior session. Markets saw a 68% chance of a Federal Reserve rate hike in October, while investors awaited U.S. inflation data.
1. Gold rebounds
Spot gold rose 1% to $4,155.73 per ounce by 12:00 p.m. ET, recovering from a more than seven-week low hit Monday. U.S. gold futures gained 0.5% to $4,189.60.
2. Rate expectations weigh
Gold remained below its 100-day moving average as inflation concerns reinforced expectations of tighter Federal Reserve policy. Markets priced in a 68% probability of an October rate hike and a 95% chance of an increase in December.
3. Investors await data
The dollar rose, testing multi-month highs, while elevated Treasury yields and energy prices added pressure to gold. Investors awaited ADP employment and PCE inflation data due Wednesday, followed by nonfarm payrolls on Friday.
