Gold Prices Slip as Strong US Data Fuels Fed Tightening Bets

Gold prices edged lower to around $4,270 an ounce on Thursday, moving closer to their lowest level since early August, weighed by expectations that the US Federal Reserve could tighten monetary policy further. Mounting US inflation pressures and signs of a resilient economy appear to be reinforcing expectations of another rate hike, with traders increasing bets on a second consecutive policy tightening in late October. The pressure on gold intensified as the dollar climbed to its strongest level in two months, following data showing that US business activity expanded at its fastest pace in more than five years. Meanwhile, weekly jobless claims fell to their lowest level in 60 years, further highlighting the resilience of the US labor market and strengthening the case for tighter monetary policy. Elsewhere, oil prices continued to rise as diplomatic talks between the US and Iran failed to show any concrete signs of progress, adding to concerns over potential supply disruptions.