Gold prices fell to a three-week low on Thursday, extending a series of losses after Federal Reserve officials warned against bets that the central bank was done raising interest rates.
The yellow metal was headed for a fourth straight day in red, amid pressure from a rebound in the dollar and Treasury yields. Waning safe-haven demand for gold also dented prices, as markets priced in a much lower risk premium from the Israel-Hamas war.
The price of gold fall today little bit. Spot gold is now worth $1,949.38 per ounce, and gold futures for December are worth $1,954.30 per ounce. Fed uncertainty persists, with Fed Chair Jerome Powell offering little cues on monetary policy during an address on Wednesday.
Powell has largely maintained his rhetoric that U.S. rates will remain higher for longer and that more work is needed to bring down inflation. This scenario bodes poorly for gold, as higher interest rates push up the opportunity cost of investing in bullion, which offers no yields.
Futures predict a 14% chance of another rate hike by January, with an 18% chance of rate cuts as early as March, according to the CME FedWatch Tool.