Gold Pulls Back From Two-Week High as Fed Hike Odds Climb to 78%
Spot gold slips 0.9% to $4,091 after touching a two-week high of $4,165.87 on Wednesday. Rising oil prices from Gulf supply disruption lift inflation expectations, with September Fed rate hike odds near 78% on CME FedWatch, up from 68%. Silver drops 1.4%, platinum and palladium also trade lower.
Nictick — educational context
Gold pays no interest. When rate expectations rise, the cost of holding it goes up compared to yield-bearing assets like bonds. That is the link markets are watching this week. Oil has climbed for five straight sessions as Gulf supply routes face disruption, and higher energy prices feed into inflation readings. CME FedWatch shows September hike odds moving from 68% to 78% in a day. The Fed meets next week and is widely expected to hold steady. Gold touched $4,165.87 before pulling back.