Updated
Updated · Reuters · Jun 11
Gold Rebounds 0.6% to $4,097 From 6-Month Low as 67% December Hike Odds Cap Gains
Updated
Updated · Reuters · Jun 11

Gold Rebounds 0.6% to $4,097 From 6-Month Low as 67% December Hike Odds Cap Gains

3 articles · Updated · Reuters · Jun 11

Summary

  • $4,097.01 an ounce marked a 0.6% rebound in spot gold after it hit its lowest level since Nov. 21, with traders covering short positions.
  • A 67% market-implied chance of a December U.S. rate hike limited the bounce after May consumer inflation accelerated to a three-year high, driven by energy-related prices.
  • U.S.-Iran attacks for a second straight day kept geopolitical risk elevated, but gold has still fallen more than 22% since the U.S.-Israeli war on Iran began in late February.
  • May U.S. producer price data due at 1230 GMT is the next test for rate expectations, while the Fed is still widely expected to hold steady at Kevin Warsh's first meeting next week.

Insights

With experts predicting both a major slump and record highs, what is the true outlook for gold's price?
Why are central banks buying record gold amounts as its safe-haven status falters during the U.S.-Iran war?
Is silver's supply deficit making it a better investment than gold amidst the current turmoil?