WASHINGTON (dpa-AFX) - Gold prices fell sharply on Monday as the dollar surged higher with recent remarks from several Federal Reserve officials indicating more aggressive rate hikes from the central bank in the coming months.
Better-than-expected U.S. jobs data released on Friday cemented bets of more large Federal Reserve rate hikes.
The dollar index climbed to 113.33 earlier this afternoon, and despite slighly dropping from that level, remains firmly above the unchanged line, at 113.17.
Gold futures for December ended lower by $34.10 or about 2% at $1,675.20 an ounce, the lowest settlement since September 29.
The Fed is widely expected to raise rates by 75 basis points for a fourth straight time next month.
Fed Bank of New York President John Williams said last week that rates need to rise to around 4.5 percent over time to bring down inflation quickly.
U.S. inflation data, minutes from the Fed's September meeting and reports on retail sales and consumer sentiment due this week will provide more insights into policymakers' view of where inflation stands and the outlook for the future path of interest rates.
The European Central Bank is also seen raising interest rates by another 75 basis points (bps) at its October meeting.
Elsewhere, market experts are expecting a 100-basis point increase in the next Bank of England (BoE) base rate decision.
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