Gold prices ease on rate hike bets
Gold prices dipped as a crude oil rally reinforced expectations of a Federal Reserve rate hike and pushed Treasury yields higher. Traders are pricing in a strong chance of a rate increase ahead of the central bank policy meeting. Meanwhile, the dollar climbed and made bullion more expensive.
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Gold fell 0.4% to $4,282.49 per ounce during Tuesday morning trading as surging oil costs reinforced expectations of a Federal Reserve rate hike. The drop follows a slide to its lowest level since August 7, driven by a stronger greenback and climbing bond yields. Higher borrowing costs increase the opportunity cost of holding non-yielding precious metals.
