Gold Holds Support Amid Nearly 90% Chance of Rate Hike

The gold market is ending another week in negative territory as investors prepare for the Federal Reserve to raise interest rates next week.

Despite this, analysts say that gold's ability to hold new support at $4,300 an ounce indicates that the threat of an imminent rate hike is losing its potency.

Spot gold last traded at $4,354.90 an ounce, down 1.7% on the week.

The August Consumer Price Index showed core inflation rising 2.4% over the last 12 months, which some economists see as a key indicator for a rate hike next week.

Chris Zaccarelli, Chief Investment Officer for Northlight Asset Management, said that 'there's no guarantee that the Fed will hike next week, but it's hard to see how the central bank can justify leaving rates on hold.'