Gold adds over 1% on easing oil prices, softer dollar
GLD•Gold rose 1.2% to $4,182.59 an ounce, its highest in a week, and was heading for a weekly gain of around 1% as oil prices fell and the U.S. dollar softened. Traders priced a 19% chance of a Federal Reserve rate hike in October and an 84% probability of at least one 25-basis-point increase by December.
1. Gold rises as oil falls
Spot gold gained 1.2% to $4,182.59 an ounce by 1200 GMT, while U.S. gold futures for December delivery rose 1.2% to $4,207.30. Oil prices fell after President Donald Trump said the United States would not attack Iran before next month's midterm elections, easing worries about Middle East supply disruptions.
2. Rate outlook in focus
A softer dollar and lower yields supported bullion, said Jefferies-owned Tradu.com senior market analyst Nikos Tzabouras, who also said gold remained vulnerable to renewed declines. St. Louis Fed President Alberto Musalem said the central bank would need to raise rates again to return inflation to its 2% target. Traders priced an 84% chance of at least one 25-basis-point rate increase by December.
3. Other metals advance
Spot silver rose 1.9% to $60.4479 an ounce, platinum gained 3.2% to $1,684.96, and palladium climbed 3.1% to $1,157.85. Bybit chief market analyst Han Tan said next week's CPI release could be the catalyst for gold's next major move.
