Gold trades near seven-week low
Gold traded near a seven-week low amid expectations that the Fed could keep interest rates higher for longer.
Spot gold hovered around $4,124 after hitting its lowest level since August 5 in the previous session. US gold futures fell 0.3% to $4,156. Markets are pricing in a more than 70% probability of a Fed rate hike in October.
Concerns that high oil prices could increase inflationary pressures and prompt the Fed to maintain tight monetary policy are weighing on gold. Fed Governor Lisa Cook also said demand driven by artificial intelligence and elevated oil prices could keep inflationary pressures alive. Meanwhile, developments in US-Iran tensions and US economic data due this week are being closely watched for the direction of gold prices.
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