Gold Prices Slide as Rate Hike Bets Surge
Gold prices have fallen as investors bet on a potential interest rate hike by the Federal Reserve. Spot gold is down 0.6% at $4,446.58/ounce, marking a decline for the week.
The price drop follows stronger-than-expected U.S. jobs data, which has boosted expectations of a rate increase as soon as this month. This has dented the appeal of non-yielding bullion, causing gold prices to fall more than 2% and hitting an intraday low of $4,364.99/ounce.
Top miners Newmont and Barrick Mining have also taken a hit, with shares down 1.4% and 1.3%, respectively. Other U.S.-listed shares, including AngloGold Ashanti, Harmony Gold, Sibanye Stillwater, Agnico Eagle Mines, and Kinross Gold, are declining between ~1% and 2%.
The decline in gold prices is a reflection of the market's growing expectations of a rate hike. As interest rates rise, investors may seek higher-yielding assets, making bullion less appealing by comparison.