Gold hits month low as dollar surges on Fed rate hike view

Gold hits month low as dollar surges on Fed rate hike view

Gold hits month low as dollar surges on Fed rate hike view

Alibaba rose 1.63 percent after the Chinese e-commerce firm took control of logistics unit Cainiao and pledged to spend $15 billion over five years to build out a global logistics network.

(Kitco News) - The recent retreat in gold prices probably is not over, with the Federal Reserve sending a message to markets that policymakers are not done hiking interest rates just yet, analysts said. Key among current uncertainties are the forces driving inflation, which has remained low in recent years despite substantial improvement in labor market conditions.

In a Treasury auction which closed Tuesday afternoon, USD26 billion in two-year notes auctioned at 1.462 percent, with 45.6 percent at high yield and a bid-to-cover of 2.88. The sharp drop in the USA dollar index supports this view, as it appears that currency speculators also called the Fed's bluff in 2017. But South Korea's Kospi added 0.1 percent to 2,375.92.

US POLITICS WATCH: House Republicans and the Trump administration officials are due to give details of the plans for a long-awaited tax proposal on Wednesday, which are expected to reduce individual and corporate tax rates.

"The idea that Trump could be reaching across the aisle, talking about tax cuts to middle and low income households, if it comes to pass, we are talking a pretty material fiscal boost to the USA economy".

The Federal Reserve has kept its benchmark lending rate near record lows since the 2008 financial crisis to stimulate the USA economy. Yellen said there is a risk that the labor market could become overheated, causing an inflation problem down the road.

U.S. gold futures for December delivery fell 0.3% to $1,297.80 per ounce. President Donald Trump has not said whether he plans to re-appoint Yellen or overhaul the central bank's seven-member board of governors.

Intel Corporation (INTC) 8th-Gen Core CPUs Fighting for Desktop Supremacy
The Core i5-8600K is a six-thread chip with a base clock speed of 3.6GHz, while the Core i5-8400 has a base clock speed of 2.8GHz. The chip has a base rate of 3.7GHz and can reach 4.7 GHz maximum single-core frequency using Intel's Turbo Boost technology.

The dollar climbed half a percent on Wednesday against a broad basket of currencies as optimism about US fiscal reforms and hawkish talk from the central bank pushed bond yields higher.

Dudley nodded to the three devastating hurricanes that have struck parts of the USA south and the Caribbean, noting their effects will likely make it more hard to interpret economic data in coming months. The tech-heavy Nasdaq Composite advanced 9.57 points, or 0.1%, to 6,380.16, recouping a fraction of losses from the previous session.

Dow e-minis were down 10 points, or 0.04 percent, with 22,892 contracts changing hands.

-Germany's 10-year yield increased one basis point to 0.406 percent.

The greenback also clawed back gains against the Japanese currency to fetch 112.73 yen. The euro fell to $1.1788 from $1.1791.

In other commodities, the Brent crude oil spot price gained 0.14% to $58.61 per barrel as of 04:35 BST.

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