CME Group IncCME Group's FedWatch Tool is cited showing 94.5% odds of a Fed rate hike, driving hedging/derivatives activity on its platform.
COMEX gold futures for December delivery closed down $19.10, or 0.44%, at $4,332.80 an ounce on Tuesday, September 15, in New York. The market was pressured by a stronger dollar and a surge in U.S. Treasury yields. The yield on the 10-year U.S. Treasury note climbed to 5.041%, its highest level in 19 years, or since 2007. The dollar index rose 0.23% to 99.616. Sharply higher crude oil prices also fueled inflation concerns, with WTI crude jumping 4.38% and Brent crude rising 2.90% after reports that crude loadings were suspended at the Yanbu port, Saudi Arabia's Red Sea oil export hub. As a result, CME Group's FedWatch Tool showed investors pricing in a 94.5% probability that the Fed will raise interest rates by 0.25% after today's meeting concludes, in a bid to counter inflation driven by the oil price surge.
CME Group IncCME Group's FedWatch Tool is cited showing 94.5% odds of a Fed rate hike, driving hedging/derivatives activity on its platform.
Article states investors price a 94.5% probability the Fed will raise rates 0.25%, pushing the effective fed funds rate higher.
10-year Treasury yield climbed to 5.041%, its highest in 19 years, as rate-hike expectations and inflation worries lift yields.