Gold slips as dollar gains and Fed rate hike bets rise
Spot gold fell 0.5% to $4,519.72 per ounce on Friday as a stronger U.S. dollar and elevated oil prices increased expectations for higher interest rates. Markets are currently pricing in a 60% chance of a Fed rate hike by December as Kevin Warsh prepares to take over as chair.
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Gold fell 0.5% to $4,519.72 per ounce on Friday as a stronger dollar and rising rate-hike expectations pressured the metal. The decline puts bullion on track for a 0.4% weekly loss while the dollar holds near a six-week high. Higher interest rates increase the opportunity cost of holding non-yielding assets, making gold less attractive to global investors.
