Gold Prices Face Third Weekly Decline Amid Fed Expectations
As markets focus on upcoming US CPI data, interest rate hike probabilities are deepening weekly losses in precious metals.
With strengthening US interest rate hike expectations and investors awaiting the CPI data, gold prices are poised to close their third consecutive week with a decline.
Weekly Loss Process in Markets
Despite showing a slight increase on Friday, gold prices are poised to complete their third consecutive week with a decline as expectations for a US rate hike strengthen and investors await critical data.
Spot and Futures Gold Prices
Spot gold rose 0.2% to $4,324.79 per ounce, losing more than 2% since the beginning of the week. US gold futures fell 1% to $4,364.70.
PPI Data and Fed Expectations
Data released on Thursday showed that the Producer Price Index for final demand rose 0.4% in August, and the increase in July was revised upward. Following this development, investors increased their expectations that the Fed will raise interest rates at its meeting next week.
Experts' Market Assessments
Exness Financial Markets Chief Strategist Wael Makarem stated that a strong data release coming in above expectations could reinforce the view for multiple rate hikes, creating additional pressure on gold.
Status of Other Precious Metals
Among other precious metals, spot silver fell 0.3% to $63.39 per ounce, losing more than 4% over the course of the week. Platinum dropped 0.2% to $1,773.93, while palladium fell 0.3% to $1,278.51.