Gold edges lower below $4,350 on imminent Fed rate hike
Gold price (XAU/USD) loses ground to near $4,340 during the early Asian trading hours on Monday. The precious metal remains under selling pressure as hotter-than-expected US inflation data raised prospects that the Federal Reserve (Fed) will hike interest rates later this week.
Gold prices dipped below $4,350 on Monday morning as investors anticipated a possible Federal Reserve interest rate increase later in the week. The core US Consumer Price Index (CPI) rose 0.3% in August, exceeding expectations and adding to concerns over rising inflation. The likelihood of a Fed rate hike climbed to 86.2%, up from 72% beforehand.
Analysts foresee a potentially dovish tone from Fed policymakers, which could help cushion gold's decline. Despite the prevailing macro uncertainties, gold has shown resilience as a safe-haven asset. Central banks continue to hold substantial gold reserves to strengthen their economies and currencies during turbulent periods.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
- Euro softens below 1.1600 as markets price in Fed rate hike fxstreet.com
- Gold slips as hotter US inflation lifts Fed hike bets, oil stokes price pressures investing.com
- After oil surge, Fed rate hike will shape challenge indianexpress.com
- Live: Wall Street rises despite hot inflation likely to trigger a Fed rate hike this week abc.net.au
