Gold Slips Nearly 2% Below $4,100 as Fed Rate-Hike Bets Test Support
Updated
Updated · Kitco NEWS · Jul 10
Gold Slips Nearly 2% Below $4,100 as Fed Rate-Hike Bets Test Support
3 articles · Updated · Kitco NEWS · Jul 10
Summary
$4,097.86 spot gold was down nearly 2% on the week, failing again to hold above $4,100 as traders braced for June CPI and Fed Chair Kevin Warsh’s first congressional testimony.
Middle East fighting has kept energy risks alive, but analysts said the bigger drag is a hawkish Fed outlook that has lifted real yields and the opportunity cost of holding non-yielding gold.
CME FedWatch still shows an 80% chance of at least one 25-basis-point hike this year and a 60% chance of a first move in September, supporting the dollar and pressuring bullion.
June CPI could decide whether gold has already found a floor: TD Securities expects headline CPI to fall 0.22% month on month, helped by a 10% drop in gasoline prices.
Several analysts still see value at current levels if inflation cools and Warsh softens, but others warn gold remains in a bear-market channel with technical support below $4,000.