Gold Slips on Dollar Strength
Gold prices edged lower toward $4,350 on Monday, pressured by a stronger US dollar and profit-taking after last week’s rally, while investors continued to monitor developments in the Middle East. Bullion reached its highest level in more than a week on Friday as falling oil prices eased concerns over prolonged inflationary pressures. Oil prices extended their decline at the start of the week as investors looked for signs of diplomatic progress on the Iran conflict around this week’s UN meetings, although tensions remained elevated as Iran and the US exchanged fresh threats on Sunday. Meanwhile, rate-hike expectations remain elevated, with traders pricing an 88% probability of a US rate increase in December, according to the CME FedWatch Tool. Last week, both the Federal Reserve and Bank of Japan raised interest rates and signaled further tightening, following a similar move by the ECB earlier this month.
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Gold prices edged lower toward $4,350 on Monday, pressured by a stronger US dollar and profit-taking after last week’s rally, while investors continued to monitor developments in the Middle East. Bullion reached its highest level in more than a week on Friday as falling oil prices eased concerns over prolonged inflationary pressures. Oil prices extended their decline at the start of the week as investors looked for signs of diplomatic progress on the Iran conflict around this week’s UN meetings, although tensions remained elevated as Iran and the US exchanged fresh threats on Sunday.
Meanwhile, rate-hike expectations remain elevated, with traders pricing an 88% probability of a US rate increase in December, according to the CME FedWatch Tool. Last week, both the Federal Reserve and Bank of Japan raised interest rates and signaled further tightening, following a similar move by the ECB earlier this month.