Gold dips amid firm dollar, concerns over aggressive U.S. rate hikes

​​​​​​​The Fed is likely to raise U.S. borrowing costs faster and further than previously expected after the inflation data, with Nomura’s economists saying they now believe a 100 basis-point rate hike is the most likely outcome at the September meet. Even though gold is seen as a hedge against inflation, higher interest rates increase the opportunity cost of holding the bullion while boosts the dollar, in which the precious metal is priced.