Gold fell more than 1% on Thursday after a firm US PPI print and rising oil prices boosted bets on a Fed rate hike next week. Capital.com senior analyst Kyle Rodda said August PPI signaled a pickup in underlying inflation partly driven by higher energy costs; headline PPI was broadly in line with forecasts but energy rebounded. CME FedWatch now prices a roughly 70% chance of a hike next week, up from 62% before the data. A Reuters survey of economists still shows most expect the Fed to hold rate

Gold fell more than 1% on Thursday after a firm US PPI print and rising oil prices boosted bets on a Fed rate hike next week. Capital.com senior analyst Kyle Rodda said August PPI signaled a pickup in underlying inflation partly driven by higher energy costs; headline PPI was broadly in line with forecasts but energy rebounded. CME FedWatch now prices a roughly 70% chance of a hike next week, up from 62% before the data. A Reuters survey of economists still shows most expect the Fed to hold rates at the Sept. 15-16 meeting and for the rest of the year. A stronger dollar and a rise in the 10-year US Treasury yield further pressured dollar-priced gold. Rodda added that higher bond yields reflect more persistent inflation pressure from oil, increasing the opportunity cost of holding non-yielding assets and weighing on gold.