Gold slips to $4,353 as U.S. rate-hike expectations return

  • Gold prices fell as renewed U.S. rate-hike expectations reversed their recent rebound.
  • $4,353 an ounce was gold's approximate international price at 8:06 a.m. on the 9th.
  • U.S. August employment data released on the 4th preceded four consecutive gold-price declines.

Gold prices reversed a sharp rebound and fell to around $4,353 an ounce as stronger-than-expected U.S. August employment data revived expectations that the Federal Open Market Committee could raise rates at its September meeting. The decline extended gold's losses to a fourth consecutive session since the 4th, after prices had recovered to $4,600 and gained about 9% last month. Gold had earlier reached a record above $5,600 an ounce before falling below $4,000 in late June. Brokerages say near-term volatility may continue because gold pays no interest and becomes relatively less attractive when interest rates and real interest rates rise. They nevertheless view the correction as a potential medium- to long-term buying opportunity, citing the risk that widening U.S. fiscal deficits could erode confidence in dollar assets and continued central-bank accumulation. China has reduced its U.S. Treasury holdings since 2013 while increasing its gold reserves. Korea Investment & Securities analyst Jung Hyun-jong said prices will depend on real interest rates and the dollar in the near term, while central-bank buying could limit the risk of a severe historical-style crash. He said gold could rise gradually if an expected early-next-year slowdown in the U.S. economy leads real interest rates lower.

The information on this website is generated using AI and we cannot guarantee its accuracy. Please use it as reference information only.