Gold slips on Fed policy tightening bets

Gold prices drifted lower on Thursday as expectations that the US Federal Reserve could tighten policy further weighed on the non-yielding metal. Spot gold fell 0.3% to $4,274.79 per ounce, by 07:02 GMT. US gold futures for December delivery fell 0.2% to $4,309.80.
“Investors are currently focused on the Fed’s higher-for-longer stance following last week’s rate increase, fluctuations in the US dollar and Treasury yields, and ⁠Middle East developments related to oil and energy supply risks,” said Ross Maxwell, chief strategy officer, VT Markets.
“A clearer signal of another rate hike would pressure gold lower.”
Mounting US inflation pressures and a strengthening economy appear to be pushing the Fed towards a rate hike on the eve of critical national elections, with ⁠traders piling into bets on a second straight policy tightening in late October.
While gold is widely regarded as an inflation hedge, rising interest rates tend to diminish its appeal relative to interest-bearing investments.
Among other metals, spot silver fell 0.8% to $63.94 per ounce, platinum lost 0.2% to $1,746.02 and palladium gained 0.4% to $1,265.51. — Reuters