Commodities
Gold Prices Soften as Fed Rate Hike Odds Rise to 86.2%
The price of gold softened on Monday as investors positioned for a possible interest rate hike by the Federal Reserve. XAU/USD traded near $4,340 in early Asian hours amid sustained selling pressure.
Market participants are now closely watching the Fed's announcement and subsequent press conference for clarity on the policy path. The implied probability of a Fed rate hike climbed to 86.2%, compared with 72% before the latest US PPI data.
The core US Consumer Price Index (CPI) increased 0.3% month-on-month in August, exceeding market expectations and reinforcing the case for tighter monetary policy. The result intensified pressure on the US central bank to deliver its first rate hike in three years at the Wednesday meeting.