MANTHANTIPS:- Gold slumps to 5-week lows on growing September rate hike bets
Gold prices were under pressure during European hours on Monday, slumping to a five-week low amid indications the Federal Reserve is gearing up to hike interest rates as early as next month. Gold for December delivery on the Comex division of the New York Mercantile Exchange touched an intraday low of $1,317.20 a troy ounce, a level not seen since July 26. It was last at $1,320.95 by 3:02AM ET (07:02GMT), down $4.95, or 0.37%. During a much-awaited speech at the Fed’s Jackson Hole symposium Friday, Fed Chair Janet Yellen said the case for U.S. interest rate hikes has “strengthened” in recent monthsdue to improvements in the labor market and to expectations for solid economic growth. However, she did not indicate when the Fed would act, saying that higher interest rates will depend on incoming economic data. Speaking shortly afterwards, Fed Vice Chair Stanley Fischer said Yellen’s speech was “consistent” with expectations for possibly two more rate hikes this year, opening the door to a September hike. According to Investing.com’s Fed Rate Monitor Tool, investors are pricing in a 36% chance of a rate hike by September, up from 21% before Yellen and Fischer spoke. December odds were at around 63%, compared to 50% Friday morning.