You are here
Gold drops as bets increase for Federal Reserve to raise rates
[SINGAPORE] Gold fell, snapping three days of gains, as bets on the Federal Reserve lifting interest rates this year ticked higher after stronger-than-expected economic data.
Bullion for immediate delivery slipped 0.1 per cent to US$1,277.65 an ounce by 8:14 a.m. in Singapore, according to Bloomberg generic pricing. The metal rallied 20 per cent this year as investors sought a haven amid equity turmoil, slowing global growth and negative interest rates in Europe and Japan.
Atlanta Fed President Dennis Lockhart and San Francisco's John Williams said Tuesday that at least two interest-rate increases may be warranted this year because the economy continues to expand and inflation is picking up.
US consumer prices climbed by the most in three years and new-home construction rose, reports showed. Traders are pricing odds for a rate hike at next month's Federal Open Market Committee meeting at 12 per cent, up from 4 per cent Monday before the data release, according to Fed funds futures.