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Gold prices hit a four-week low on Monday, MarketWatch reported. The metal is feeling pressure from a Federal Reserve policy statement that hinted at raising interest rates sooner rather than later.
Gold prices hit a four-week low on Monday, MarketWatch reported. The metal is feeling pressure from a Federal Reserve policy statement that hinted at raising interest rates sooner rather than later.
As quoted in the publication:
December gold GCZ5, -0.61% fell $4.50, or 0.4%, to trade at $1,136.90 an ounce in early Monday trade, putting the yellow metal on track to finish at its lowest level since Oct. 2. Last week, gold lost 1.8% but still managed to log an October gain of 2.4%.
Barclays research predicts that gold might see a bounce if the Fed’s policy setting committee doesn’t lift interest rates until March 2016. The probability of a rate increase in December is 47%, about 55% in January and 69% in March, according to the CME Group’s FedWatch tool. That data suggest a rate increase could come anytime between now and March, but investors are harboring greater expectations for 2016.
