Gold Slips on Strong Dollar
Gold prices eased to around $4,180 an ounce on Monday after reaching a one-week high earlier in the session, as a firm US dollar weighed on bullion and investors awaited key inflation data that could influence the Federal Reserve’s interest-rate outlook. The dollar remained near its strongest level in 18 months, supported by tensions in the Middle East and caution ahead of this week’s US consumer and producer price reports and retail sales data. Stronger-than-expected readings could reinforce expectations of tighter monetary policy, pushing Treasury yields and the dollar higher and placing further pressure on gold. Markets have scaled back expectations for a Fed rate hike this month, with traders pricing in less than a 20% probability of an increase, while assigning an 85% chance of a hike by December, according to CME’s FedWatch tool. Investors will also monitor this week’s IMF-World Bank annual meetings for further signals from global central bankers on the monetary policy outlook.
Gold prices eased to around $4,180 an ounce on Monday after reaching a one-week high earlier in the session, as a firm US dollar weighed on bullion and investors awaited key inflation data that could influence the Federal Reserve’s interest-rate outlook. The dollar remained near its strongest level in 18 months, supported by tensions in the Middle East and caution ahead of this week’s US consumer and producer price reports and retail sales data. Stronger-than-expected readings could reinforce expectations of tighter monetary policy, pushing Treasury yields and the dollar higher and placing further pressure on gold.
Markets have scaled back expectations for a Fed rate hike this month, with traders pricing in less than a 20% probability of an increase, while assigning an 85% chance of a hike by December, according to CME’s FedWatch tool. Investors will also monitor this week’s IMF-World Bank annual meetings for further signals from global central bankers on the monetary policy outlook.