Gold climbs more than 1% as inflation fears ease on lower crude prices
GLD•Gold rose 1.5% to $4,126.25 an ounce as the dollar eased and lower crude prices eased inflation concerns. Traders saw an 80.5% chance of a December Fed rate hike ahead of US inflation data.
1. Gold gains as oil falls
Spot gold rose 1.5% to $4,126.25 per ounce by 9:26 a.m. ET, while US gold futures for December delivery gained 1.5% to $4,135.50. A weaker dollar and lower crude prices eased inflation concerns, supporting gold and silver.
2. Markets await inflation data
Investors were awaiting US consumer price data on Tuesday and producer price figures on Friday. Traders saw an 80.5% chance of a December rate hike, according to the CME FedWatch tool; stronger-than-expected payrolls data on Friday had reinforced expectations that rates could stay higher for longer.
3. China adds to gold 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, according to World Gold Council data. Spot silver gained 1.4% to $52.61 an ounce, platinum rose 1.9% to $1,561.57, and palladium added 0.5% to $1,028.57.
