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MTECHTIPS:-Gold futures slump amid U.S. rate hike outlook

MTECHTIPS:-Gold futures slump amid U.S. rate hike outlook

Gold futures edged lower on Tuesday, as expectations for a U.S. rate hike in the coming months continued to weigh on the precious metal. Gold for December delivery on the Comex division of the New York Mercantile Exchange inched down $5.40, or 0.48%, to trade at $1,126.30 a troy ounce during European morning hours. A day earlier, gold retreated $13.90, or 1.21%, after New York Federal Reserve Bank President William Dudley said that the Fed remains on track for a rate hike this year and could move as soon as the upcoming meeting in October. The comments came after Fed Chair Janet Yellen said last Thursday that the U.S. central bank was likely to raise interest rates in 2015. Most economists believe the Fed will begin raising rates in December after holding policy steady earlier this month due to concerns over soft inflation and the effects of recent market volatility on the U.S. economy. Gold fell to a five-and-a-half year low of $1,072.30 on July 24 amid speculation the Fed will raise interest rates for the first time since 2006 at some point this year. The timing of a Fed rate hike has been a constant source of debate in the markets in recent months.

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