Gold tumbles to 2-week minimum on Fed rate hike bets
On Monday, gold prices were under pressure during European trade, dropping to a two-week minimum as the American dollar soared amid indications the Fed could increase interest rates as early as next month.
In New York, December delivery gold futures sagged to a session minimum of $1,335.40 per troy ounce, a level not observed since August 9.
Odds for a near-term rate lift mounted after on Sunday, Stanley Fischer, Fed vice chairman told that the American economy was close to hitting the major bank’s targets for full employment and also 2% inflation.
Fischer's speech turned to be just the latest piece of hawkish rhetoric from top Fed representatives. The previous week, San Francisco John Williams, Fed President , New York Fed Chief William Dudley as well as Atlanta Fed President Dennis Lockhart told that a September rate lift might be on the table.
According to Fed Rate Monitor Tool, traders are actually pricing in a 15% probability of a rate lift by September, up from 6% at the beginning of the previous week.