Gold falls to over one-week low on firm dollar, Fed rate hike bets - Investify

AI desk brief

Spot gold fell 0.2% to $3,977.99/oz at 0506 GMT Thursday, its weakest since November 4, while December US futures slipped 0.4% to $3,983.20. The Business Recorder report attributed pressure to a dollar at a 19-month high following stronger-than-expected US inflation and hawkish Federal Reserve comments. It reported expectations for a rate increase next month and another in March next year, with Friday’s US producer-price data awaited. Continued dollar strength could weigh on bullion; higher policy-rate expectations alone do not establish a rise in real yields. Palladium gained 0.5% to $1,032.63/oz Wednesday.