Gold Near $4,022 Heads for Worst Quarter Since 2013 as Fed Hike Bets Lift Dollar
Updated
Updated · CNBC · Jun 30
Gold Near $4,022 Heads for Worst Quarter Since 2013 as Fed Hike Bets Lift Dollar
3 articles · Updated · CNBC · Jun 30
Summary
Spot gold held near a seven-month low at $4,022.29 an ounce on Tuesday, leaving bullion on course for its steepest quarterly drop since the second quarter of 2013.
An 11% monthly slide and a fourth straight monthly decline have been driven by a firmer dollar and rising expectations that the Fed will raise rates rather than cut them.
CME FedWatch shows traders now assign a 64% chance of a September hike after Middle East war-driven energy prices wiped out expectations for U.S. easing this year.
Saxo Bank said traders are now selling into strength, with gold needing to break above $4,100 before a durable low can be considered in place.
Attention is shifting to U.S. ADP and nonfarm payrolls data for fresh clues on the Fed path, a key near-term driver for non-yielding bullion.