PRECIOUS-Gold down for seventh straight session as US Fed stays hawkish
Shafaq News/ Gold continued to sell off on Tuesday, clocking its longest losing streak since Aug. 2022 in the last session as Federal Reserve officials underscored the likelihood of interest rates staying high, with U.S. job openings data due later in the day.
Spot gold XAU=was down 0.6% to $1,817.00 per ounce as of 0306 GMT, falling for a seventh consecutive session to its lowest since March 9. U.S. gold futures GCcv1shed 0.7% to $1,833.40.
The dollar scaled a fresh 10-month peak, while Treasury yields hit new 16-year highs after data on Monday showed U.S. manufacturing took a step further towards recovery in September. USD/US/
A stronger greenback and higher bond yields weigh on bullion, which is priced in dollars and bears no interest.
"Quite simply, everyone's been surprised by the resilience of the U.S. economy, including policymakers," said Kyle Rodda, financial market analyst at Capital.com.
Fed officials say monetary policy will need to stay restrictive for "some time" to bring inflation back down to the its 2% target, but their unity around that phrase masks an ongoing debate over another possible rate hike this year.
Markets priced in a 45% chance of another 25-basis-point rate hike this year, but also expect a 42% possibility of some monetary policy easing in the first half of 2024, according to the CME FedWatch tool.
"A break below $1800 (per ounce) will be fairly eye-catching for traders," Rodda said, adding "We have seen some buying support emerge there in the past."
Traders now looked to the U.S. Labor Department's Job Openings and Labor Turnover Survey (JOLTS) report, expected at 1400 GMT.
Spot silver XAG= dipped 1.4% to $20.77 per ounce, its lowest level in six and a half months, while platinum XPT=fell 0.8% to a one-year low of $869.90.
Palladium XPD= edged down 0.1% to $1,200.04.
(REUTERS)
