Gold Falls Despite Rate Hike Outlook
Gold prices retreated after a temporary rise, with the spot ounce falling by 1.3% to $4,352, and the futures contracts dropping to $4,408. This came after the release of US inflation data, which showed a slowdown in both headline and core inflation, leading to reduced expectations of a Federal Reserve rate hike, with the chances of a rate increase in September decreasing to around 34%. The decline in interest rates generally supports non-yielding assets like gold, but the Federal Reserve is generally inclined to keep rates steady until the end of the year, while continuing to monitor inflation data and global economic developments.
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