Gold eases near $4,400 as rate-hike bets rise
Gold traded near $4,400 an ounce on Tuesday after falling the prior session. Rate-hike expectations grew as investors priced about a 60% chance of a 25-basis-point Fed move next week.
Gold traded near $4,400 an ounce on Tuesday after the previous session’s decline, with expectations building that major central banks will raise interest rates this month as elevated oil prices stoke inflation concerns. Markets are pricing in about a 60% probability that the US Federal Reserve will deliver a 25-basis-point rate hike next week after strong jobs data, while upcoming inflation figures are expected to provide further clues. The European Central Bank and Bank of Japan are also widely expected to raise rates this month. Investors are also watching developments in the Middle East, where renewed US-Iran fighting has pushed oil prices higher.
Gold may still find support from investment and hedging demand, with central bank purchases and the so-called debasement trade remaining key drivers for the metal.