Gold on Track for Third Weekly Loss on Firm Dollar, Hawkish Fed Signals
Spot gold fell 0.8% as markets priced an 85% chance of a December U.S. rate hike, according to the CME FedWatch Tool.
- On Thursday, gold futures settled 3.1% lower at $4,245.9 after the Federal Reserve held interest rates steady on Wednesday, signaling a hawkish policy stance.
- The Fed's hawkish tilt pushed the DXY to a one-year high on Thursday, making greenback-priced bullion more expensive for overseas buyers. Gold, a non-yielding asset, typically struggles in high interest rate environments.
- According to the CME FedWatch Tool, markets now price in an 85% chance of a December rate hike, up from 61% before the Fed's statement. Spot gold fell 0.8% to $4,225.39 per ounce.
- A U.S.-Iran ceasefire helped dial back inflation concerns, sending Brent and WTI futures to their lowest levels since early March. This easing of geopolitical tensions provided a floor under gold prices.
- Nine out of 19 Fed policymakers see a need for a rate hike later this year, even as prices touched their lowest level since November 2025 last week. This suggests further pressure ahead.
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20 Articles
The Star Kuala Lumpur
ZawyaGold heads for third weekly loss on firm dollar, hawkish Fed signals
GOLD prices were on track for a third consecutive weekly decline, falling more than 1% on Friday, as a stronger dollar and hawkish signals from the U.S. Federal Reserve weighed on the metal.
The prices of future gold contracts closed in fall, after the Federal Reserve (Fed) signal that the next interest movement can be a high, scenario that reduces the attractiveness of precious metal, because it does not offer yield. The fall in oil prices, after the peace agreement between the United States and Iran enters into force, was in the background. In Comex, metal division of the New York Mercantile Exchange (Nymex), the gold with deliver…
Although the decision was expected by economists, concerns persist about the behavior of inflation and the strength of economic growth.
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