Gold Rises as Fed Rate-Hike Expectations Ease
Gold rose in early Asian trading after expectations for a Federal Reserve rate hike eased following the release of U.S. inflation data. ANZ Research analysts said in a report that consumer prices in July rose only slightly from June. The data suggested the Fed is likely to leave interest rates unchanged at its next meeting, with markets pricing in only a 40% chance of a rate hike, the analysts said. “This extends the emerging trend of data that is easing expectations for monetary tightening and should provide further support for gold in the coming months,” they added. Higher interest rates typically weigh on non-interest-bearing assets such as gold. Spot gold rose 0.5% to $4,433.11 an ounce.
Gold rose in early Asian trading after expectations for a Federal Reserve rate hike eased following the release of U.S. inflation data.
ANZ Research analysts said in a report that consumer prices in July rose only slightly from June. The data suggested the Fed is likely to leave interest rates unchanged at its next meeting, with markets pricing in only a 40% chance of a rate hike, the analysts said.
“This extends the emerging trend of data that is easing expectations for monetary tightening and should provide further support for gold in the coming months,” they added.
Higher interest rates typically weigh on non-interest-bearing assets such as gold. Spot gold rose 0.5% to $4,433.11 an ounce.
ANZ Research analysts said in a report that consumer prices in July rose only slightly from June. The data suggested the Fed is likely to leave interest rates unchanged at its next meeting, with markets pricing in only a 40% chance of a rate hike, the analysts said.
“This extends the emerging trend of data that is easing expectations for monetary tightening and should provide further support for gold in the coming months,” they added.
Higher interest rates typically weigh on non-interest-bearing assets such as gold. Spot gold rose 0.5% to $4,433.11 an ounce.