Gold Prices Slump Amid Rate Worries and Inflation Data
Gold prices slipped more than 1% on Wednesday as investors digested fresh U.S. inflation figures and awaited the Federal Reserve's latest rate decision.
The spot price of an ounce stood at $4,293.15, a marginal daily decline of 0.1%, after Tuesday's close of $4,295.09. However, bullion now trades 4.7% below its 200-day moving average of $4,507.41, a technical breach that has put the longer-term chart under scrutiny.
This is hardly the first time in September that rate worries have weighed on gold. Robust U.S. inflation data and rising oil prices knocked more than 1% off the price on September 10, according to Reuters, with only a briefly softer dollar offering any cushion as the rate debate dominated sentiment.
The metal's sensitivity to currency moves has been on full display in recent sessions. An actual rate hike or a signal of a persistently restrictive stance by the Fed would threaten further headwinds for bullion, while a pause could take some of the sting out of the recent selling.