Gold Falls Further as Strong US Data Boosts Dollar
Gold prices extended losses to around $4,280 an ounce on Wednesday, pressured by a stronger US dollar following stronger-than-expected PMI data and hawkish comments from Federal Reserve officials. The dollar reached fresh near two-month highs after US business activity accelerated for a fourth consecutive month in September, reaching its fastest pace in more than five years, supported by stronger manufacturing and services output. Richmond Fed President Tom Barkin said higher rates and the prospect of further increases could temper inflation expectations without significantly slowing economic activity. The Fed raised rates by 25 basis points last week and signaled another hike could come before year-end. Markets are pricing in a near 60% chance of an October increase, according to CME FedWatch. Meanwhile, geopolitical tensions remained in focus as President Trump threatened further action against Iran while suggesting a deal could be reached soon amid renewed diplomatic efforts.
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6 an ounce on Wednesday, pressured by a stronger dollar as stronger-than-expected PMI data and hawkish comments from Federal Reserve officials reinforced expectations for tighter monetary policy. The dollar climbed to fresh near two-month highs after US business activity accelerated for a fourth consecutive month in September, reaching its fastest pace in more than five years. Richmond Fed President Tom Barkin said higher interest rates, along with the prospect of further increases, could help temper inflation expectations without significantly weakening economic activity.
The Fed raised rates by 25 basis points last week and signaled that another hike could come before year-end. Markets are pricing in a near 60% chance of an October increase, according to CME FedWatch. Meanwhile, geopolitical tensions remained in focus as President Trump threatened further action against Iran while also suggesting that a deal could be reached soon amid renewed diplomatic efforts.