Gold Drops as Nervous Traders Again Seek Haven in the Dollar
- US inflation data boosts expectations for aggressive rate hike
- Dollar gauge hits record high, surpassing peak from 2020
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Gold dropped back toward an 11-month low as investors again turned to the dollar as a haven asset amid expectations for more aggressive US monetary tightening.
The metal slipped as much as 2.2% after ending Wednesday 0.6% higher in the wake of a searing inflation report from the US. Investors bet that the Fed is more likely than not to raise interest rates by 100 basis points when it meets later this month, a move that would boost the chances of the economy entering a recession.