Gold Prices Slip as Investors Await US Inflation Data and Fed Signals
Gold prices dipped on Tuesday as investors took a cautious stance ahead of key US inflation data releases this week. The precious metal fell 0.3% to $4,390.50 per ounce by 0816 GMT, after reaching an intraday high of $4,442.70. US gold futures for December delivery declined 0.9% to $4,435.00 per ounce.
Nikos Tzabouras, Senior Market Analyst at Tradu.com, attributed the decline in gold prices to higher oil prices and increased expectations of a US interest-rate hike. 'Higher oil prices stoke inflation risks and expectations for Fed rate hikes, putting the precious metal under pressure,' he said.
The US labour market data released last week showed stronger-than-expected job growth, which strengthened expectations that the Federal Reserve could raise interest rates at its next policy meeting. According to CME's FedWatch Tool, markets are now pricing in roughly a 60% chance of a rate increase, compared with about 50% before the jobs report.