Rate-hike bets keep gold on track for its worst week in four months
GLD•Gold was down more than 4% for the week, its steepest weekly decline since early June, as expectations of further Federal Reserve tightening weighed on bullion. US final-demand PPI rose 0.3% last month, below the 0.4% increase forecast in a poll.
1. Gold extends weekly losses
Spot gold rose 0.2% to $3,885.09 an ounce in Friday mid-session trading after briefly reaching $3,922.97 following the PPI release. It remained on track for its worst week since early June after falling 3% on Thursday to a more-than-one-year low.
2. Rate expectations ease slightly
The probability markets assigned to a 25-basis-point US rate hike in December slipped to 91.4% after the data, from 96.2% beforehand; the probability of a 50-basis-point increase fell to 8.6% from 13.8%. Silver and platinum were down 1.7% on Friday, while palladium gained 1.6%; all three were also on course for weekly losses.
