PRECIOUS-Gold dips as Fed hike bets rise, still heads for best month since Jan
GLD•Gold eases as rate-hike bets rise
Gold slipped on Monday as renewed Middle East attacks stoked inflation worries and strengthened bets on higher U.S. interest rates after hawkish comments from Federal Reserve Chair, but bullion was still on track for its biggest monthly rise since January.
Spot gold XAU= fell 0.4% to $4,436.04 per ounce by 0835 GMT, having touched its lowest level since August 19 earlier. U.S. gold futures GCcv1 for December delivery dropped 1% to $4,486.40.
"Gold remains under pressure following Kevin Warsh’s hawkish address on Friday, while renewed U.S.-Iran tensions are adding to inflation concerns, increasing expectations of a Fed rate hike before the end of the year," ActivTrades senior analyst Ricardo Evangelista said.
Gold declined over 3% on Friday, in its biggest one-day fall since June 10, after Fed Chair Kevin Wars, at the Jackson Hole symposium said the U.S. central bank will "have work to do" if policymakers were not confident inflation was returning to its 2% target.
Traders have ramped up September rate hike bets to 60%, up from roughly 36% prior to Warsh's comments, as per the CME FedWatch Tool. FEDWATCH/
Silver, platinum and palladium also move
Elsewhere, spot silver XAG= rose 1% to $66.99 per ounce, and is up over 16% this month after hitting its highest since mid-June on Friday.
Platinum XPT= slipped 1.1% to $1,799.89, and palladium XPD= slid 1.3% to $1,403.92. Both metals were headed for their biggest monthly rise since December.
