Gold Prices Decline as Markets Price 88% Chance of September Fed Rate Increase - Yahoo Finance UK

AI desk brief

Gold fell as markets raised the odds of a September Fed hike to about 88% after August US core CPI rose 0.3% m/m, with the stronger dollar and higher crude also weighing on bullion. Spot gold was down 0.4% at $4,331.84/oz, gold futures fell 0.8% to $4,371.65, silver lost 1.0% to $63.88/oz, and platinum edged up 0.2% to $1,802.94; the DXY rose 0.3% to 99.42.

Bullion had already fallen 1.8% last week, its third straight weekly decline, though it remains near $4,400 after rebounding from around $4,000 in July. ANZ expects three 25 bp Fed hikes by March 2027 and kept its 12-month gold target at $5,400/oz, citing geopolitical risk, recovering ETF holdings and speculative positioning, plus stronger institutional demand in China and rising investor participation in India.