Gold prices dip ahead of US inflation data as Fed hike odds rise
Reuters reported that spot gold fell 0. 4% on 10 November as investors awaited the U. S. consumer price index release and priced in a high likelihood of a December Federal Reserve rate hike. Earlier in the week, FXStreet noted that strong U. S. non-farm payrolls released on 6 November pushed the dollar higher and sent gold down to about $4,060, increasing market expectations of a December rate hike.
Livemint reported gold slipping to around $4,020 after the robust jobs report, prompting analysts to lower their year-end price forecast. Reuters later said gold rose to $4,112. 90 on 4 November as lower oil prices eased inflation concerns. FXStreet observed a rebound above $4,020 in Asian trading as the dollar softened and speculation grew that the incoming Democratic Congress would seek a lower defence budget. On 8 November, FXStreet reported gold climbing near $4,100 amid a weaker dollar and improving sentiment over Middle-East talks, but on 9 November the metal fell to about $4,125 as expectations of a Fed hike intensified and traders monitored U. S. –Iran negotiations.
