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Wednesday, August 10, 2022

Gold Prices Dip as U.S. Wage Inflation Cements 2 Fed Rate Hikes

Gold Prices Dip as U.S. Wage Inflation Cements 2 Fed Rate HikesWorries over inflation push gold prices lower.

Investing.com – Gold prices headed lower on Friday as the showed that wage inflation accelerated to its fastest pace since April 2009, that the Federal Reserve will follow through on two more interest rate hikes this year.

At 10:48 AM ET (14:48 GMT), for December delivery on the Comex division of the New York Mercantile Exchange slipped $1.10, or 0.09%, to $1,203.20 a troy ounce, compared to $1,206.70 ahead of the release.

Beyond the solid creation of in August, or a holding near 18-year lows, the focus was on the 2.9% increase in .

The increase in wages is being closely monitored by the Fed for evidence of diminishing slack in the labor market and upward pressure on inflation

Although a was already fully priced in for the , odds for an additional increase in December rose to 76% compared to 70% ahead of the report.

Higher interest rates tend to weigh on demand for gold, which doesn’t bear interest, in favor of yield-bearing investments.

In other metals trading, gained 0.63% at $14.270 a troy ounce by 10:50 AM ET (14:50 GMT).

rose 1.14% to $973.10 an ounce, while sister metal traded down 1.06% at $782.50.

In base metals, advanced 0.51% to $2.650 a pound.

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Source: Investing.com

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