Gold drops to $4,050 as hotter US CPI fuels Fed rate-hike bets
According to FXStreet, spot gold fell about 2. 2% to around $4,050 on November 10 after U. S. consumer price index data came in above forecasts, strengthening the dollar and raising expectations of a Federal Reserve rate increase in December. The day before, Reuters reported that spot gold slipped 0. 4% as investors awaited the CPI release, with markets pricing in a high likelihood of a December rate hike. Earlier in the week, FXStreet said gold fell to around $4,125 in early Asian trade, pressured by rising Fed hike odds after a strong jobs report while traders monitored developments in U. S. –Iran peace talks.
Reuters noted that gold rose 1. 2% to $4,112. 90 as lower oil prices eased inflation concerns and expectations of a possible December Fed hike persisted. FXStreet added that the metal climbed to about $4,094 on the same day, supported by a softer dollar and improving risk sentiment amid Middle East negotiations. FXStreet also observed that gold rebounded above $4,020 in Asian trading, aided by a weaker dollar and speculation that the incoming Democratic Congress would pursue a lower defense budget, while strong payroll data lifted expectations of further Fed tightening. Livemint reported that on November 6 gold fell to around $4,020 after a robust jobs report heightened expectations of a Fed rate increase, prompting analysts to lower their year-end price forecasts. FXStreet earlier noted that gold slipped below $4,100 after non-farm payrolls topped forecasts, raising market odds of a December rate hike. Initially, FXStreet had said gold prices were down following stronger-than-expected US job growth, which had strengthened the dollar.
