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.