Gold climbs over 1% on softer dollar, yields ahead of US inflation data
GLD•Spot gold rose 1.3% to $4,156.58 per ounce as the dollar and Treasury yields fell, with investors awaiting US producer price and retail sales data for clues on inflation and Federal Reserve policy.
1. Gold prices rise
Spot gold was up 1.3% at $4,156.58 per ounce by 1124 GMT, while US gold futures for December delivery rose 1.7% to $4,178.50. The dollar slipped 0.5%, and the benchmark 10-year Treasury yield fell to a three-week low.
2. Inflation data in focus
US consumer prices accelerated in September as gasoline costs surged, with price pressures spreading beyond energy. Investors were awaiting producer price and retail sales data due at 1230 GMT for further clues on inflation trends and the Federal Reserve’s policy path.
3. Rate outlook
Traders priced in about a 29% chance of a rate hike later in October, compared with 22% before the inflation data. San Francisco Fed President Mary Daly said further rate increases would probably be needed but signalled no need to act at the October meeting; Vice Chair for Supervision Michelle Bowman said there was time to wait.
