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NewsSignalsAI analysis·Reuters·

Rate-hike bets keep gold on track for worst week in four months

Grade Abearish AI signal$XAU
Gold is heading for its worst weekly decline in four months, with bullion down approximately 4.5% as hawkish Federal Reserve expectations and elevated inflation concerns weigh on prices. Spot gold fell to a more-than-one-year low on Thursday after dropping 3%, while Friday's softer-than-forecast PPI data reduced expectations of a larger December rate hike. Persistent rate-hike expectations could continue pressuring gold by increasing the opportunity cost of holding non-yielding bullion.

Bullish strength: 20/100

  • Softer-than-forecast PPI reduced expectations of a 50-basis-point December rate hike from 13.8% to 8.6%.
  • Spot gold recovered 0.1% on Friday.

Bearish strength: 80/100

  • Gold has fallen approximately 4.5% this week.
  • Thursday's 3% selloff pushed gold to a more-than-one-year low.
  • Markets still price a 91.4% probability of a December rate hike.
  • Hawkish Fed expectations and elevated inflation concerns continue weighing on bullion.

This is automated NewsSignalsAI analysis of third-party reporting, not independent original reporting or investment advice. AI scores are not price predictions.

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