Gold slides as oil surge fuels Fed rate hike bets
Gold fell to around €3,970/oz ($4,316) as rising crude prices from Middle East disruptions reinforced expectations the US Federal Reserve will raise interest rates this week. Higher borrowing costs typically weigh on non-yielding bullion, per Bloomberg and Nasdaq.
Bottom line — Traders now price a 90%+ chance of a 25-basis-point Fed rate hike on September 15-16, per CME FedWatch.
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- Gold traded around $4,300/oz (€3,956) after falling over 1% to a five-week low, per Bloomberg.
- Saudi Arabia shut its 1,200 km East-West pipeline due to Houthi attacks, per Nasdaq.
- WTI crude rose above $101/barrel (€93) on supply disruption fears, per Nasdaq.
- Goldman Sachs and HSBC analysts expect a 25-basis-point rate hike, per Nasdaq.
- Core CPI rose 0.3% in August, above market expectations of 0.2%, per Nasdaq.