FX.co ★ Gold Holds Decline on Hawkish Fed View

Gold remained below $4,000 an ounce on Thursday after declining for two consecutive sessions, pressured by a stronger US dollar. The greenback found support in higher-than-expected US inflation data and increasingly hawkish remarks from Federal Reserve officials, which reinforced expectations of further interest rate hikes. Fed Governor Christopher Waller signaled that a 50-basis-point increase in December may be warranted, while Dallas Fed President Lorie Logan backed at least two additional 25-basis-point hikes to counter persistent inflationary pressures. Markets are now assigning roughly a 91% probability to a rate increase next month, with further hikes in January and potentially April also being priced in. Investors are shifting their focus to upcoming US data releases—weekly jobless claims, existing home sales, and producer price inflation—for additional clues on the Fed’s future policy path.