Gold Prices Pull Back Amid Rate Hike Speculation
Gold prices pulled back to near $4,400 per ounce at the start of September after US non-farm payroll data exceeded expectations, reigniting speculation about a Federal Reserve rate hike in September.
The probability of a rate hike is now around 60%, up from 50% previously, according to the CME 'FedWatch' tool.
Federal Reserve officials have been sending hawkish signals, with Chairman Kevin Warsh stating that inflation is above the 2% policy target and several officials reiterating their determination to reduce inflation.