Gold Slips as Dollar Gains and Markets Anticipate Another Fed Rate Increase - Yahoo Finance UK

AI desk brief

Gold slipped as a firmer dollar and expectations for additional Fed tightening pressured bullion: spot gold fell 0.7% to $4,345.76/oz and gold futures lost 1.0% to $4,383.10/oz. CME FedWatch implied an 88% probability of another Fed rate increase in December after last week’s first hike since 2023, while the dollar index rose 0.1% to 100.30.

ING said gold was lower as investors weighed the implications of the Fed’s move and the prospect of prolonged restrictive policy. The article also notes that falling crude prices had helped bullion last week by easing inflation concerns, but Monday’s stronger USD and higher-for-longer rate expectations dominated.