Gold Price Falls to Three-Week Low as Fed Rate Hike Probability Hits 70%
TLDR
- Gold has fallen for four straight sessions, dropping to a three-week low near $4,327 per ounce
- A stronger U.S. dollar and rising Treasury yields are pushing gold lower
- Markets are now pricing a 70% chance of a Fed rate hike at the September 15-16 meeting
- U.S. strikes on Iran have pushed oil prices higher, fueling inflation concerns
- Gold broke below its 200-day moving average, a key technical level
Gold prices have extended their slide this week, hitting their lowest level in more than three weeks as the dollar strengthens and expectations for a Federal Reserve interest rate hike grow.
At the time of writing, gold spot prices traded around $4,327 per ounce, while gold futures fell 0.5% to $4,373. The metal has now dropped around 6% on the week.
Fed Rate Hike Fears Weigh on Gold
The pressure on gold comes from multiple directions. Federal Reserve Chair Kevin Warsh delivered a hawkish message at Jackson Hole last week, signaling that rates may need to stay higher for longer.
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