Gold climbs more than 1% as inflation fears ease on lower crude prices
GLD•Gold rose 1% to $4,107.01 an ounce as the dollar eased and lower crude prices reduced inflation fears. Traders saw an 82.2% chance of a December Fed rate hike ahead of US inflation data.
1. Gold prices rise
Spot gold was up 1% at $4,107.01 per ounce, while US gold futures settled 1% higher at $4,114.50. A weaker dollar made bullion more affordable for overseas buyers, and lower crude prices eased inflationary jitters.
2. Markets await data
Investors are awaiting US consumer price data on Tuesday and producer price figures on Friday. Traders see an 82.2% chance of a December rate hike, the CME's FedWatch tool showed. Gold gained around 5% last week, then eased after stronger-than-expected US payrolls data reinforced expectations that the Fed could keep rates higher for longer.
3. Other precious metals
China's central bank added about 25.8 metric tons of gold to its reserves in October, the largest monthly purchase in three years, according to World Gold Council data. Silver and platinum each gained 1.8%, while palladium rose 0.3%.
