Gold steadies after Fed rate-hike bets lift
Gold traded around $4,460 an ounce after falling more than 3% last session. Hawkish comments from Fed Chair Kevin Warsh revived expectations for an imminent September rate hike, lifting pricing for a 25-basis-point move to around 57%.
Gold traded around $4,460 an ounce on Monday after tumbling more than 3% in the previous session, as hawkish remarks from Federal Reserve Chair Kevin Warsh revived expectations for an imminent interest rate hike.
In his Jackson Hole address on Friday, Warsh warned that inflation is not easing significantly and reaffirmed the central bank’s commitment to bringing inflation back to its 2% target, while noting that financial conditions are not currently restrictive.
Markets are now pricing in around a 57% chance of a 25-basis-point Fed rate hike in September, up sharply from roughly 40% a week earlier.
Gold also remained pressured by rising oil prices after the US military targeted Iranian rocket launchers preparing to deploy mines into the Strait of Hormuz, marking the first such attack in more than a month.