Gold Steadies Amid OPEC Oil Price Surge and Hawkish Fed Bets
The price of gold stabilized on Thursday after a sharp selloff in the previous session, as oil prices rose and strong US data lifted bets on more Federal Reserve interest rate hikes.
As of 04:40 ET (08:40 GMT), gold had fallen by 0.5% to $4,267.43 an ounce, while gold futures declined by 0.4% to $4,301.17 an ounce.
The price of oil rose above $100 a barrel after Iranian President Masoud Pezeshkian told the United Nations that Iran would not allow freedom of navigation through the Strait of Hormuz while US sanctions remain in place.
The strong US data, which showed business activity expanding at its fastest pace in more than five years in September, has traders now seeing a roughly 77.5% probability of a rate hike in October, up from 55.4% a week ago, according to CME FedWatch.