Gold Set for Weekly Drop as Traders Assess Fed Rate Hike Signals
· Business · Economic Times
Gold prices held steady on Friday but remained on track for a weekly loss as market participants weighed the prospect of further Federal Reserve rate hikes following stronger-than-expected US inflation data. Spot gold recorded a modest drop of 0.1% to stand at $4,165.12 per ounce, pushing it down 0.7% for the week. US gold futures for December delivery settled 0.3% higher at $4,181.10 per ounce amid broad market hesitance. Data released this week showed US producer prices increased at their fastest pace in four and a half years following an acceleration in consumer prices in September. Traders currently expect the US central bank to hold rates steady this month while pricing in a 90% probability of a rate hike in December.
Why it matters
Changes in US Federal Reserve interest rate expectations directly influence global bullion prices, affecting domestic gold values and import costs for Indian consumers and investors.
Read the original report — Economic Times
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