Gold Silver Reports — Gold Slips as Dollar Strengthens on Possible Rate Hike — Gold prices fell on Tuesday as the dollar strengthened on increasing bets that the Federal Reserve will raise US interest rates. Chicago Fed President Charles Evans, speaking in Sydney, said he “could be fine“ with raising US interest rates in December, but that he would prefer to see how the economy and inflation progressed before deciding.
Traders have priced in a 70% chance that the Fed will raise rates at a Dec 13-14 meeting, up from 66% early on Friday, according to CME Group’s FedWatch tool.
Spot gold had dropped 0.3% to $1,256.05 an ounce by 1310 GMT. US gold futures fell 0.2% to $1,257.60 an ounce.
“A stronger dollar is weighing on most commodities and there is the outlook for the Fed potentially raising rates in December, which is damaging for gold,“ ING commodity strategist Warren Patterson said. Bullion touched a fourmonth low of $1,241.20 an ounce on Friday and registered its biggest weekly drop for 11 months, down 4.5%, after forecast-beating US data and comments from Fed officials saying there was a strong case for raising rates. — Neal Bhai Reports