Gold Falls for Third Straight Session Amid Rate Hike Bets and Dollar Strength
New York gold futures fell for the third consecutive session on September 14 due to rising US long-term yields and dollar strength. The most actively traded contract, December gold delivery, settled at $4,330.51 per troy ounce in regular trading, down $43.00 (0.98%) from the previous session.
The decline was driven by nearly certain expectations of a rate hike at the upcoming US Federal Open Market Committee (FOMC) meeting on September 16-17. This would increase the cost of holding non-yielding gold and lead to investment outflows.
However, geopolitical risks surrounding the US-Iran conflict and the Red Sea region continue to pose threats to global stability, maintaining some safe-haven demand for gold.
The price of crude oil rebounded on September 14, with front-month West Texas Intermediate (WTI) crude for October delivery settling at $101.39 per barrel, up $1.34 (1.3%) from the prior week's close.