Gold falls below $4,300 as Fed hike bets firm
Gold dropped below $4,300 an ounce, extending losses after a third straight weekly decline, as a stronger US dollar and higher odds of a Federal Reserve rate hike weighed on the metal.
Gold slipped below $4,300 an ounce on Monday, marking its lowest level in more than a month and adding to a third straight weekly decline as a stronger US dollar and rising expectations of a Federal Reserve rate hike weighed on the metal. Markets are assigning about a 90% probability to a rate hike on Wednesday after US consumer inflation data for August showed an acceleration. A key measure of underlying inflation rose at its fastest pace in four months and came in slightly above expectations.
Oil prices kept climbing after Saudi Arabia shut a major crude pipeline following drone attacks, disrupting a route that bypasses the Strait of Hormuz and adding to global supply concerns. The Bank of Japan is also expected to raise rates on Friday, with elevated energy prices and persistent Middle East tensions complicating the inflation outlook.