Gold Continued to Decrease Amid Expectations of Fed Rate Hike
Quotes of gold moderately decreased, reaching 4-week minimum, which was due to rising expectations that the Fed will again raise interest rates this year. In addition, the pressure on prices was exerted by the strengthening of the US currency. Gold has fallen in price by 1.9% since the beginning of the week and traded at the lowest level since August 25. In North American trade, the spot price for an ounce of gold was $1285.39.
Analysts suggest that the fact that rate hike is expected in December, will limit the growth of gold prices. Now futures on the Fed rate, tracked by the CME Group, indicate that investors estimate the probability of another rate hike this year at 81.4%.