Gold Nears $4,000, Heading for Worst Week Since June
Spot gold fell 0.3% to $4,013.34 per ounce, heading for a 3.6% weekly loss, its largest since June, as an 80% chance of a US rate hike in December is priced in.
Spot gold fell 0.3% to $4,013.34 per ounce at 0815 GMT, after touching its lowest level since July 20, according to Reuters.
December futures dropped 0.8% to $4,028.00 per ounce, while the metal is heading for a weekly loss of 3.6%, the largest since June.
Pressure on gold came as inflation fears driven by rising oil prices mounted, reinforcing expectations that the US will keep interest rates high and pushing traders to price in an 80% chance of a rate hike in December.
Monte Safieddine of Capital.com said speculators are trying to defend the $4,000 level, warning that a break below this level could signal sticky inflation, higher yields, and a stronger dollar.
What do these terms mean?
Spot Gold: The buying and selling price of gold for immediate delivery in metals markets, used as a global reference for pricing the metal.
Futures Contracts: An agreement to buy or sell a quantity of gold at a set price today with delivery at a later date, such as the December contract.
Pricing in a Rate Hike: The percentage estimated by market traders for the likelihood of the central bank raising interest rates at a given meeting.
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