Gold dips for fourth session as oil rally fans inflation concerns
GLD•Spot gold fell 0.1% to $4,119.37 per ounce, its fourth consecutive session of declines, as higher oil prices stoked inflation concerns. Investors looked ahead to next week’s Federal Reserve meeting and US inflation data.
1. Gold extends decline
Spot gold was down 0.1% at $4,119.37 per ounce by 0516 GMT, while US gold futures for December delivery slipped 0.1% to $4,137.00. Oil prices edged higher on Middle East supply concerns, including Red Sea shipping risks and threats to Saudi oil infrastructure.
2. Rate expectations in focus
Investors are looking to next week’s Federal Reserve policy meeting for clues on interest rates. Expectations of a hike at the October 27-28 meeting were as low as 15%, while traders saw an 88% chance of a hike in December, according to CME’s FedWatch Tool. Higher rates typically weigh on gold because the metal does not pay interest.
3. Other metals fall
The US dollar index stabilised after recent losses, weighing further on bullion demand. Markets are also waiting for US Personal Consumption Expenditures data next week. Spot silver fell 1.1% to $57.35 per ounce, platinum declined 0.6% to $1,639.47 and palladium dropped 1% to $1,091.78.
