Gold Set for Third Weekly Loss on Fed Rate Hike Bets — SkimNews
Get the Finance newsletter
Daily finance — markets, central banks, M&A, the prints that move money. Free.
- Gold prices fell more than 2% for the week, with spot gold at $4,324.79/oz and December US gold futures down 1% at $4,364.70, extending losses into a third straight weekly decline
- August US PPI for final demand rose 0.4% after an upwardly revised 0.1% July gain, sending traders toward bets the Federal Reserve will hike rates at its meeting next week
- The US CPI report is due at 1230 GMT Friday, with markets watching for further confirmation of the Fed's policy path
- Wael Makarem, Exness financial markets strategist lead, warned a stronger CPI reading would reinforce the case for several rate hikes, lifting Treasury yields and the dollar and adding pressure to gold
- Iran-aligned Houthis seized Yemen's port city of Mocha and advanced down the Red Sea coast to strategic islands, hours after President Trump said he expected the Iran war to end after the midterm elections
- Oil prices rose, with both major benchmarks tracking a first weekly close above $100/barrel since mid-May
- Silver, platinum, and palladium all headed for weekly losses — silver down 0.3% to $63.39 (4%+ on the week), platinum off 0.2% at $1,773.93, and palladium down 0.3% at $1,278.51
Why it matters: Gold is losing more than 2% this week despite oil topping $100, Houthi seizures of a Yemeni port, and an ongoing Iran war — the classic safe-haven triggers are being swamped by rate-hike expectations. With non-yielding bullion facing rising opportunity costs and Treasury yields climbing, the entire precious metals complex (silver, platinum, palladium) is being dragged down in tandem.
Ask SkimNews
