Gold climbs over 1% on softer dollar, yields ahead of US inflation data
GLD•Spot gold rose 1.2% to $4,156.11 an ounce as the dollar and Treasury yields fell. Investors awaited US producer prices and retail sales data for clues on inflation and the Federal Reserve’s next move.
1. Gold gains as yields fall
Spot gold rose 1.2% to $4,156.11 per ounce by 0917 GMT, while US gold futures for December delivery gained 1.7% to $4,177.80. 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, with gasoline costs surging and price pressures spreading beyond energy. Investors awaited producer price and retail sales data due at 1230 GMT; traders priced in a 29% chance of a rate hike later this month, up from 22% before the inflation data.
3. Fed outlook and other metals
Saxo Bank’s Ole Hansen said falling real yields and investment demand were helping gold recover from its post-CPI selloff, while its technical outlook remained fragile. San Francisco Fed President Mary Daly said further rate increases would probably be needed but signalled no need to act in October; Michelle Bowman said there was time to wait. Silver rose 1.8%, platinum gained 0.3% and palladium climbed 2.9%.
