Gold near 7-week low

Gold traded near its lowest level since late June as swap investors in the U.S. increased their pricing of a new rate hike to above 50 percent. Gold traded near its lowest level since late June after better-than-expected U.S. retail sales data sent bond yields higher as investors increased their pricing of a new Fed rate hike this year. Spot gold is trading at $1,905 per ounce. The ounce of gold and gram of gold calculated using the interbank dollar/TL exchange rate are finding buyers at TL1,660. Retail figures on Tuesday strengthened the case for policymakers to continue monetary tightening, sparking a rally in U.S. bond yields. Rising interest rates and bond yields have traditionally been negatively correlated with gold. Swap investors have raised the probability of another Fed hike this year to slightly above 50 percent. That pricing helped gold fall below $1,900 an ounce for the first time since June 29 before paring losses, the precious metal posting its lowest close since mid-March.