MTECHTIPS:-Gold falls to more than 10-month low on Fed rate hike view

MTECHTIPS:-Gold falls to more than 10-month low on Fed rate hike view

MTECHTIPS- Gold prices fell to the lowest level in more than ten months on Monday, as expectations for a rate hike by the Federal Reserve this week continued to weigh on the precious metal. Gold was trading at $1,156.25 a troy ounce by 09:43 GMT, after falling as low as $1,153.00 earlier, the weakest since February 4. The dollar slid lower against a basket of six other major currencies but remained close to recent highs, with the U.S. dollar index dipping 0.13% to 101.47. Little doubt now remains that the Fed will hike rates for the first time in a year at the conclusion of its meeting on Wednesday, with investors pricing in a 100% chance of an increase, according to federal funds futures tracked Investing.com’s Fed Rate Monitor Tool. The Fed is also expected to announce updated economic forecasts and markets will be watching for signals the outlook for inflation and the expected pace of rate hikes in 2017. Both a strong dollar and higher interest rates are typically bearish for gold, which is denominated in dollars and struggles to compete with yield-bearing assets when borrowing costs rise.

WWW.MTECHTIPS.COM
07489294118-119