High impact
Spot gold fell below $4,000/oz for the first time since July on October 23, down over 3% this week, with an analyst citing high oil prices, rising Fed December rate-hike expectations, and global liquidity tightening as causes.
Jin1010/25, 03:11 PM
- $4000
- 3%
- $114/bbl
Figures as quoted by Jin10
Why it matters
Rising Fed December rate-hike expectations support the dollar. Higher US rates make dollar-denominated assets more attractive and increase the opportunity cost of holding non-yielding gold, putting downward pressure on prices.
Market impact
Which way this story pushes each asset. An inference from the story, not a measured move.
USD
Pushes up
DaysMedium confidence
Rising Fed December rate-hike expectations tend to support the dollar
What could change this
If the Fed signals it may hold rates steady rather than hike in December, rate-hike expectations could ease and lessen the pressure on gold.
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