Gold Slides as Fed Rate Cut Uncertainty Grows
Gold prices tumbled nearly 3% on Friday, retreating below $4,100 as Federal Reserve officials cast doubt on a potential December rate cut. The metal's inverse relationship with interest rates came into sharp focus, with higher rates diminishing the appeal of non-yielding assets.
Kansas City Fed President Jeffrey Schmid reinforced his hawkish stance, calling inflation "too hot" and dismissing rate cuts as a solution for labor market weaknesses. Market-implied odds for a December cut collapsed to 49.6% on CME's FedWatch tool, down from 94.4% a month ago.