Gold slips to $4,434 on Fed rate-hike fears

Bullion prices dropped on Monday to their weakest point in close to a fortnight, after Kevin Warsh, chair of the Federal Reserve, suggested that additional rate increases might be required to restrain inflation. Mettis Global reported that spot gold had shed 0.46% to $4,434.25 an ounce by 10:41 am PST.

Market pricing moved sharply after those comments, with CME FedWatch data showing the chance of a September Fed hike climbing to 57% from 36% beforehand. Gold is usually treated as a hedge against inflation, yet it becomes less appealing when borrowing rates rise because the metal pays no income of its own.

Investors will next focus on a set of US labour indicators: job openings, ADP jobs figures, weekly unemployment claims and nonfarm payrolls, CNBC said. Separately, US forces reportedly hit two Iranian missile launchers on Larak Island on Sunday, the first such move by Washington since late July, and oil prices rose on the development. Silver dipped 0.5% to $66.01 an ounce, while platinum lost 0.5%, reaching $1,810.64, and palladium fell 1.7% to $1,397.11.