Commodities
Gold Tumbles as Fed's Rate Hike Bets Soar
Gold prices plummeted by nearly 3% on Friday after Federal Reserve Chairman Kevin Warsh's comments raised bets on an interest rate hike. Spot gold fell to $4,567.23 per ounce, its lowest level since August 20.
The decline comes as traders increased their expectations of a September rate hike following Warsh's remarks that the Fed will 'have work to do' if policymakers are not confident that underlying inflation is returning to its 2% target.
According to the CME FedWatch tool, traders now see a 58% chance of a U.S. rate hike in September, up from 36% before Warsh's comments.