Gold slides 1% as Fed hike bets linger ahead of US inflation data
GLD•GLD•GLD•GLD•Spot gold fell 1.1% to $4,022.19 an ounce as traders priced in an 80% chance of a Fed rate hike in December. Investors awaited US PCE inflation data due at 1230 GMT.
Spot gold fell 1.1% to $4,022.19 per ounce by 0855 GMT on Thursday, putting bullion on track for a second straight monthly decline. US gold futures for December delivery fell 0.4% to $4,035.00 per ounce.
The Fed kept rates unchanged on Wednesday, while traders continued to price in about an 80% chance of a December rate hike. US Personal Consumption Expenditures data, the Fed’s preferred inflation gauge, was due at 1230 GMT. Han Tan, chief market analyst at Bybit, said gold may fall below $4,000 if the data exceeds expectations and strengthens the case for a December hike.
Higher interest rates increase the opportunity cost of holding non-yielding gold. Spot silver fell 2.4% to $52.67 per ounce, platinum dropped 2.3% to $1,502.61 and palladium slid 0.8% to $1,002.55.
