Gold Prices Poised for Monthly Decline Amid Interest Rate Fears
Gold prices are poised to decline for the month of September due to expectations of higher interest rates. The US personal consumption expenditures price index is set to be released today, which could influence the direction of Treasury yields and the dollar. Higher interest rates typically reduce gold's appeal as it does not offer a yield.
According to the CME's FedWatch Tool, traders see a 47% chance of a Federal Reserve rate increase in October and a 92% chance of a hike in December. New York Fed President John Williams said that Fed policymakers probably only need one more hike this year to get inflation back on track to the central bank's 2% goal.
Gold prices have lost 6% so far this month, with spot gold trading at $4,180.30 per ounce as of 0435 GMT. US gold futures gained 0.8% to $4,212.70.