Gold climbs more than 1% as inflation fears ease on lower crude prices
GLD•Spot gold rose 1.2% to $4,116.15 an ounce as the dollar eased and lower crude prices eased inflation concerns. Traders saw an 82.2% chance of a Federal Reserve rate hike in December ahead of US inflation data.
1. Gold gains as oil falls
Spot gold rose 1.2% to $4,116.15 per ounce by 11:30 a.m. ET on Monday, while US gold futures for December delivery gained 1.2% to $4,125.40. The dollar eased, making bullion cheaper for overseas buyers, and lower crude prices eased inflation fears.
2. Markets await inflation data
Traders saw an 82.2% chance of a December rate hike, while markets awaited US consumer price data on Tuesday and producer price figures on Friday. Stronger-than-expected payrolls data on Friday had reinforced expectations that the Fed could keep rates higher for longer.
3. China adds to reserves
China’s central bank added about 25.8 metric tons of gold to its reserves in October, its largest monthly purchase in three years, based on World Gold Council data. Spot silver rose 1.6% to $52.69, platinum gained 2.1% to $1,564.95, and palladium rose 0.2% to $1,025.46.
