Gold prices fall 0.7% as Fed tightening bets weigh
Spot gold fell to $4,254.77 an ounce. US gold futures slipped 0.7% to $4,289.70. Silver, platinum and palladium also declined.
Sept 28 (Reuters) — Gold prices fell on Monday as a rise in oil prices heightened inflation concerns and reinforced expectations of further Federal Reserve interest rate hikes. 77 per ounce, as of 0010 GMT. 70. Iran insisted that only diplomacy can solve its conflict with the United States and Israel, after US President Donald Trump said he rejected an Iranian proposal to reopen the Strait of Hormuz and end fighting.
Oil prices rebounded more than 1%. 75% and 4%. According to CME's FedWatch Tool, traders are pricing in a 66% chance of a US rate hike in October. Higher energy prices can fuel inflation by raising costs across the economy.
Gold is widely viewed as a hedge against inflation, but it can struggle in a high interest rate environment as rising yields increase the opportunity cost of holding the non-yielding metal. US/ Cleveland Fed President Beth Hammack said on Friday she is concerned that persistently high inflation risks conditioning the American public to accept elevated prices as the norm, adding the central bank cannot let that happen. A survey showed US consumer sentiment slipped to a four-month low in September amid worries that rising inflation would erode households' purchasing power. 70.
com;)