Gold Hits $4,046 Six-Month Low as 67% Fed Hike Odds Cap Rebound
Updated
Updated · CNBC · Jun 11
Gold Hits $4,046 Six-Month Low as 67% Fed Hike Odds Cap Rebound
3 articles · Updated · CNBC · Jun 11
Summary
$4,046.20 August gold futures marked the lowest level since November before bouncing on short covering, with the metal still down 6.3% this week.
May U.S. inflation rose at its fastest pace in three years, and a stronger jobs report lifted market pricing for a year-end Fed hike to 67%, undermining non-yielding gold.
Next week's Fed meeting is still expected to leave rates at 3.50% to 3.75% in Kevin Warsh's first meeting as chair, even as traders turn more hawkish than most economists.
Gold's technical backdrop remains weak after a break below its 200-day moving average for the first time since September 2023, while ETF outflows and softer futures positioning point to fading investor demand.
The Iran war's fourth month has kept energy prices elevated and fed inflation pressure, leaving banks split between near-term weakness and a later rebound if Strait of Hormuz tensions ease.