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Gold Futures Slump to One-Month Low Amid U.S. Rate Uncertainty

  • `Perhaps gold has seen short-term highs,' BMO's Wong says
  • Odds of September rate increase still at more than 50 percent
Updated on

Gold struggled to erase losses after slumping to the lowest in more than a month as investors sift through clues on the Federal Reserve’s next move on interest rates.

Federal Reserve Bank of San Francisco President John Williams said Monday the global economy was having a significant impact on measures U.S. policy makers watch to determine interest rates. While the odds of an interest rate increase by September fell from a week earlier, they remained above 50 percent, Fed funds futures data compiled by Bloomberg show. Higher borrowing costs curb the appeal of gold against interest-bearing assets.