Gold Prices Slip Amid Rising Fed Hike Odds
Gold prices slipped to $4,332.34 an ounce on Tuesday, down 0.3% from Monday's close. The December Fed hike odds rose to 90%, capping upside through a firm dollar and 10-year Treasury yield near 5%. Physical demand remains strong, with Chinese gold imports already surpassing the full-year total.
The Federal Reserve's decision to raise rates for the first time in three years has markets pricing in another hike in December. This caps gold's upside, while physical demand continues to build a floor under the price. The result is a range-bound market, with edges of $4,285 and $4,460 being key levels.
The dollar's strength is also weighing on gold prices, making it more expensive for buyers holding other currencies. The 90% probability of a December Fed hike has raised concerns about inflation, which in turn is affecting the precious metal's price.