Spot gold was down 0.2% at $1,824.10 per ounce by 0057 GMT, falling for a seventh consecutive session to its lowest since March 9. U.S. gold futures fell 0.4% to $1,840.50.
The dollar scaled a 10-month peak, while Treasury yields hovered near 16-year highs, after the U.S. government averted a partial shutdown and economic data supported the prospects of rates staying higher for longer. [USD/] [US/]
U.S. manufacturing took a step further towards recovery in September as production picked up and employment rebounded, according to a survey on Monday that also showed prices paid for inputs by factories falling considerably.
Fed officials say monetary policy will need to stay restrictive for “some time” to bring inflation back down to the its 2% target, but their unity around that phrase masks an ongoing debate over another possible rate hike this year.
Higher rates raise opportunity cost of holding bullion, which is priced in dollars and does not yield any interest.
Markets priced in a 45% chance of another 25-basis-point rate hike this year, but also expect a 41% possibility of some monetary policy easing in the first half of 2024, according to the CME FedWatch tool.Spot silver dipped 0.8% to $20.90 per ounce, its lowest level in six and a half months, while platinum edged down 0.1% to a one-year low of $876.42. Palladium gained 0.5% to $1,206.84.
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