Gold Futures Touch Lowest in a Month as Fed Rate Bets Climb
- Gold price falls to $1,317.20, the lowest since July 20
- Fed funds futures indicate 36% chance of September rate hike
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Gold futures touched the lowest in more than a month after comments from central bankers last week boosted speculation that U.S. interest rates may rise as soon as next month.
Fed funds futures indicated a 36 percent chance that the Fed will hike rates in September, up from 24 percent a week ago. Higher rates make bullion less competitive against interest-bearing assets. Gold pared losses late in the trading session as the U.S. dollar relinquished most of its gains on Monday afternoon.