Gold Closes at $4,140 as December Rate Hike Bets Approach 90%
Gold closed at $4,140.47, down 0.59%, as the probability of a rate hike in December approached 90% and September inflation accelerated to 3.7%.
Spot gold closed at $4,140.47 per ounce, down 0.59%, in a session dominated by fears of continued monetary tightening, according to a market closing review published by "FX168".
The odds of a US interest rate hike in December approached 90%, while expectations for the October meeting remained below 20%, after data showed consumer price inflation at 3.7% year-on-year, producer prices at 6.3%, and retail sales growth at 0.8%.
The 10-year US Treasury yield stabilized near 5.135%, a level that maintains pressure on gold because higher yields increase the cost of holding the non-yielding metal.
US stock indices ended mixed, with the Nasdaq up 1.1% and the S&P 500 up 0.4%, led by technology and semiconductor shares, while the Dow Jones fell 0.1%. In Europe, indices fell sharply after weekend protests in France and Italy renewed concerns about public finances, borrowing costs and political stability, with the Stoxx 600 down 0.80% and the CAC 40 down 1.11%.
What do these terms mean?
Consumer Price Index: An index that measures the change in prices of goods and services purchased by consumers, used to measure inflation.
Producer Price Index: An index that measures the change in prices of goods and services at the factory gate before reaching the consumer.
Treasury Bond Yield: The percentage return earned by a holder of a government bond on their investment; a rise in yields makes gold less attractive.
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