7 hrs ago
Gold Steadies Near $4,400 as Traders Weigh Fed Rate Hikes
Gold prices stayed close to $4,400 per ounce.
Traders are waiting for new US inflation reports.
These reports may show whether the Federal Reserve will raise interest rates.
Higher interest rates can make gold less attractive because gold does not pay interest.
Higher bond yields have also created pressure on gold prices.
Gold has mostly moved around $4,400 since recovering from about $4,000 in July.
Rising oil prices and conflict in the Middle East are raising concerns about future inflation.
Traders currently estimate a 65% chance of a rate hike at the Federal Reserve's next meeting.
Gold held near $4,400 an ounce after rising 1% in the previous session.
Traders are awaiting US producer and consumer inflation data for clues about Federal Reserve policy.
Higher 10-year Treasury yields pressured gold because the metal does not pay interest.
Brent crude reached $100 a barrel amid renewed inflation and energy-supply concerns.
Swaps traders are pricing in roughly a 65% chance of a Federal Reserve rate hike.
- Who
- Gold traders, the Federal Reserve, and investors.
- What
- Gold steadied near $4,400 as markets assessed the likelihood of a Federal Reserve rate hike.
- Where
- Gold was quoted in Singapore trading, while inflation and interest-rate concerns centered on the United States.
- When
- This week, ahead of the Federal Reserve meeting scheduled for Sept. 14-15.
- Why
- Traders are awaiting US inflation data and weighing the effects of bond yields, oil prices, and Middle East tensions.
Key facts
- Gold price
- $4,400.32 an ounce at 7:22 a.m. in Singapore
- Previous session
- Gold gained 1%, ending a three-day losing streak
- Rate-hike probability
- Swaps traders priced in roughly a 65% chance
- Upcoming data
- US producer price and consumer price indexes are due this week
- Federal Reserve meeting
- Scheduled for Sept. 14-15
- Oil price
- Brent crude reached $100 a barrel for the first time since July
- Other metals
- Silver was $67.29 an ounce; platinum and palladium edged higher
Sources
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