Rate-hike bets keep gold on track for worst week in four months
GLD•Gold rose 0.1% to $3,879.71 an ounce on Friday but was down about 4.5% for the week, its steepest decline since early June. US PPI rose 0.3% last month, and markets lowered the odds of a 50-basis-point December rate hike to 8.6%.
1. Gold remains on course for weekly loss
Spot gold rose 0.1% to $3,879.71 an ounce on Friday after briefly reaching $3,922.97 following US producer-price data. It remained on track for a roughly 4.5% weekly decline, its worst week since early June, after falling 3% on Thursday to a more-than-one-year low.
2. Rate expectations ease slightly
The US Producer Price Index for final demand rose 0.3% last month, below the 0.4% increase forecast in a poll. Markets saw a 91.4% chance of a 25-basis-point rate hike in December, down from 96.2% before the data; the probability of a 50-basis-point move fell to 8.6% from 13.8%. Analyst Tai Wong said bond-market weakness and expectations of Federal Reserve hawkishness were weighing on gold.
3. Other metals also decline
Silver fell 1.9% to $49.05 an ounce and platinum dropped 1.9% to $1,490.06, while palladium rose 1.1% to $1,004.40. Silver, platinum and palladium were all on course for weekly losses.
