Gold Remains Under Pressure on Fed Hike Bets
Gold prices traded around $4,280 an ounce on Friday, down more than 1% for the week, as rising US Treasury yields and growing expectations of further Federal Reserve rate hikes weighed on the metal. Meanwhile, oil prices paused a two-day rally as US and Iranian negotiators in New York reportedly explored a deal that could see Tehran reopen the Strait of Hormuz and Washington ease its economic blockade of Iran. However, inflationary pressures remain elevated, while a series of strong economic data releases, including PMI figures showing US business activity grew at its fastest pace in five years in September, prompted markets to price in further Fed tightening. Traders are pricing in a nearly 70% chance of a hike in October and a 95% probability of another increase in December, according to the CME FedWatch Tool. Meanwhile, gold demand in India picked up modestly as lower prices attracted buyers ahead of the festive season.
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Gold prices traded around $4,280 an ounce on Friday, down more than 1% for the week, as rising US Treasury yields and growing expectations of further Federal Reserve rate hikes weighed on the metal. Meanwhile, oil prices paused a two-day rally as US and Iranian negotiators in New York reportedly explored a deal that could see Tehran reopen the Strait of Hormuz and Washington ease its economic blockade of Iran. However, inflationary pressures remain elevated, while a series of strong economic data releases, including PMI figures showing US business activity grew at its fastest pace in five years in September, prompted markets to price in further Fed tightening.
Traders are pricing in a nearly 70% chance of a hike in October and a 95% probability of another increase in December, according to the CME FedWatch Tool. Meanwhile, gold demand in India picked up modestly as lower prices attracted buyers ahead of the festive season.