As the Fed rate hike probability rose to 47% this December and the USD strengthened across the board, gold prices are now down to almost 1%.
According to Fxstreet.com, “at USD 1153.00/oz, the metal is heading fast towards the key support at 1146.25 (38.2% of July to October rally). Following a slightly hawkish Fed statement, the USD index shot up to 97.88 levels, which triggered a sell-off in gold.”
Fxstreet.com added that EUR/USD suffered a fall of 1.25%, thereby keeping the metal relatively resilient in the EUR terms. The metal stays relatively resilient in the CHF terms as well. The focus now shifts to the preliminary US Q3 GDP estimate due tomorrow.